Company raises funds to repay debt under its revolving credit facility
By Devika Patel
Knoxville, Tenn., Oct. 27 – Sandstorm Gold Ltd. said it priced a $25 million public offering of units with a $3.75 million greenshoe.
The company will sell 8,772,000 units of one common share and a half-share warrant at $2.85 per unit on a bought-deal basis. Each whole warrant will be exercisable at $4.00 for five years. The strike price is a 33.33% premium to the Oct. 26 closing share price of $3.00.
The deal is being conducted by a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets.
Settlement is expected Nov. 3.
Proceeds will be used to reduce the balance of the company’s revolving credit facility and for general working capital purposes.
Sandstorm is based in Vancouver, B.C. It provides upfront financing to gold-mining companies and receives gold streaming agreements in return.
| Issuer: | Sandstorm Gold Ltd.
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| Issue: | Units of one common share and a half-share warrant
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| Amount: | $25 million
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| Greenshoe: | $3.75 million, or 1,315,800 units
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| Units: | 8,772,000
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| Price: | $2.85
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | $4.00
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| Underwriters: | National Bank Financial Inc. and BMO Capital Markets (co-leads)
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 3
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| Stock symbol: | NYSE: SAND
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| Stock price: | $3.00 at close Oct. 26
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| Market capitalization: | $313.56 million
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