Deal includes C$1 million greenshoe; strike price reflects premium
By Susanna Moon
Chicago, May 11 - Canadian Zinc Corp. secured an agreement with Northern Securities Inc. as agent to raise C$5 million of units, according to a company press release. The deal includes a C$1 million over-allotment option.
The company priced the units of one share and one half-share warrant at C$0.90 each, with each whole warrant exercisable at C$1.15 for 18 months.
The strike price represents a 13.86% premium to the company's closing price on May 10 of C$1.01.
Proceeds will be used to advance the company's Prairie Creek Mine, toward production and for working capital.
Settlement is expected to occur on May 31.
Completion of the offering requires approval by the Toronto Stock Exchange.
Toronto-based Canadian Zinc is a zinc exploration company.
| Issuer: | Canadian Zinc Corp.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$5 million
|
| Greenshoe: | C$1 million
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.15
|
| Agent: | Northern Securities Inc.
|
| Pricing date: | May 11
|
| Settlement date: | May 31
|
| Stock symbol: | TSX Venture: CZN
|
| Stock price: | C$1.01 at close May 10
|
| Market capitalization: | C$128.08 million
|
© 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.
