Well, the latest news release speaks of a rights offering to shareholders of record at the close on April 5th, 2002.
One right will be given for each share owned at that time, which entitles you to purchase a share for 0.20 anytime before May 1st, 2002. Any thoughts?? Here's the release:
Breakwater Announces Details of Rights Offering
March 28, 2002…..(TSE..BWR) Breakwater Resources Ltd. ("Breakwater") is pleased to announce that it has received approval from securities regulators for its rights offering by prospectus (the "Prospectus") to raise up to $18.9 million for working capital purposes. Breakwater will issue rights ("Rights") to subscribe for common shares of Breakwater (the "Common Shares") to its shareholders of record at the close of business on April 5, 2002. Each shareholder, other than U.S. residents, will receive one Right for each Common Share held on the record date. One Right will entitle the holder to purchase one Common Share at a price of $0.20 until 4:30 p.m. (Toronto time) on Wednesday May 1, 2002.
If all of the Rights are exercised, Breakwater will issue 94,454,795 Common Shares and receive net proceeds of approximately $17,690,959. Breakwater expects to mail the certificate representing the Rights and the Prospectus to its shareholders on or about April 9, 2002. The Prospectus provides information concerning the Company, the rights offering and instructions for exercising Rights.
Holders of Rights who fully exercise their Rights are entitled to subscribe for additional
Common Shares at a price equal to the subscription price ($0.20 per Common Share). The number of Common Shares available under the additional subscription privilege will be limited to the Common Shares, if any, not otherwise subscribed for under the basic subscription privilege of the rights offering. These additional Common Shares will be allotted, as available, on a pro rata basis to each shareholder exercising this additional subscription privilege.
The Rights will commence trading on The Toronto Stock Exchange on April 3, 2002 under the symbol BWR.RT, and will cease at 12:00 noon, Toronto time on May 1, 2002.
Griffiths McBurney & Partners will act as the managing dealer to form a dealer group to solicit subscriptions for Breakwater Common Shares.
Dundee Bancorp Inc. ("Dundee"), Breakwater's largest shareholder, has indicated its intention to subscribe for at least one-third of the number of Common Shares subscribed for in connection with the Rights Offering (to the extent available, in the case of its subscription for Common Shares which exceeds the pro rata entitlement of Dundee under the rights offering), up to a maximum of $5 million.
Breakwater is also pleased to announce that it has completed the financing previously announced in November, 2001. The banking syndicate has provided the Company with a supplemental term facility of US$6.5 million, approximately $10 million Canadian. Dundee has provided the banking syndicate with a US$6.5 million letter of credit to enable Breakwater to increase its credit facilities.
Additionally, scheduled payments will no longer be required under the term facility, the revolving facility is extended until January 2, 2003, which is also the new maturity date for the term facility, and the requirement to meet financial convenants has been removed. Interest payments must be kept current during this period. The revolving facility has been capped at US$37.5 million. Provided that at least $15 million is raised pursuant to the rights offering the revolving facility will be restored to its original limit of US$45 million.
Should you require further information please contact:
Colin K. Benner
President and Chief Executive Officer
416-363-4798 Ext. 269
cbenner@breakwater.ca
René R. Galipeau
Executive Vice President and Chief Financial Officer
416-363-4798 Ext.260
rgalipeau@breakwater.ca |
