Bookrunner Roth helps fund European wet processing facility expansion
By Devika Patel
Knoxville, Tenn., Aug. 18 – Crailar Technologies Inc. said the underwriters for its public offering of units opted to exercise the deal’s $975,000 greenshoe in full for total proceeds of $7.48 million. The deal was announced April 25 and priced for $6.5 million with the greenshoe on Aug. 1.
The company sold 14.95 million units of one common share and one warrant at $0.50 per unit, with each warrant exercisable at $0.535 for five years. The strike price is a 0.93% discount to the July 31 closing share price of $0.54. Of the units, 1.95 million were part of the fully exercised greenshoe.
Roth Capital Partners was the sole bookrunning manager.
Proceeds will be used to expand the company’s European wet processing facility and purchase additional decortication equipment and for working capital, general corporate purposes and the possible redemption of the company’s convertible debentures.
The Victoria, B.C., company offers cost-effective and environmentally sustainable natural fiber in the form of flax, hemp and other fibers for use in textile, industrial, energy, medical and composite material applications.
| Issuer: | Crailar Technologies Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $7,475,000 (including $975,000 greenshoe)
|
| Units: | 14.95 million
|
| Price: | $0.50
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.535
|
| Bookrunner: | Roth Capital Partners
|
| Co-manager: | Wunderlich Securities
|
| Announcement date: | April 25
|
| Pricing date: | Aug. 1
|
| Settlement date: | Aug. 18
|
| Stock symbol: | OTCBB: CRLRF
|
| Stock price: | $0.54 at close July 31
|
| Market capitalization: | $24.83 million
|
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