Greenshoe for C$10 million of stock-and-warrant units exercised
By Angela McDaniels
Tacoma, Wash., May 12 - Ryan Gold Corp. said it raised C$52.28 million through a bought-deal private placement of units and flow-through shares. The offering, which was expected to be C$40.03 million when it priced on April 27, was upsized to C$42.28 million on April 28, and the over-allotment option for C$10 million of additional units was exercised in full.
The syndicate of underwriters was co-led by GMP Securities LP and Dundee Securities Ltd. and included PowerOne Capital Markets Ltd. and Clarus Securities Inc.
Including the greenshoe for 5 million units, the company sold 15 million units for C$2.00 each and 9.9 million flow-through shares for C$2.25 each.
Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable at C$3.00 for two years, which is a 40.85% premium to the April 26 closing share price of C$2.13.
Beginning four months after the settlement date, the company can accelerate the expiration of the warrants if the closing price of its stock exceeds 125% of the strike price for 20 consecutive trading days.
The price per flow-through share is a 5.63% premium to the April 26 closing share price.
According to a previous news release, Ned Goodman Investment Counsel Ltd. and Osisko Mining Corp. are among the investors. Osisko planned to invest C$4.59 million by buying units.
Proceeds will be used to advance the company's projects and for general working capital purposes.
The placement was conditioned on the closing of the acquisition of properties from Shawn Ryan and 45127 Yukon Inc., which occurred on Wednesday.
Ryan Gold is a Toronto-based gold exploration company.
| Issuer: | Ryan Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$52,275,000
|
| Agents: | GMP Securities LP and Dundee Securities Ltd. (co-leads), PowerOne Capital Markets Ltd. and Clarus Securities Inc.
|
| Investors: | Ned Goodman Investment Counsel Ltd. and Osisko Mining Corp. (for C$4,586,666)
|
| Pricing date: | April 27
|
| Upsized: | April 28
|
| Settlement date: | May 12
|
| Stock symbol: | TSX Venture: RYG
|
| Stock price: | C$1.80 at close May 11
|
| Market capitalization: | C$176.4 million
|
|
|
| Units
|
| Amount: | C$30 million, including C$10 million greenshoe
|
| Units: | 15 million
|
| Price: | C$2.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$3.00
|
|
|
| Flow-through shares
|
| Amount: | C$22,275,000
|
| Shares: | 9.9 million
|
| Price: | C$2.25
|
| Warrants: | No
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
