Red - you are referring to the following NR. If I understand you correctly, you are saying that once this sale is done at .80, its up, up, and away...to say a buck, then, hopefully, results churn things higher. Did you mention that "strong hands" are taking down this offer? Offer is over Aug 31.
Shear Announces $1.75 Million Brokered Offering
Thursday August 14, 1:51 pm ET
EDMONTON, ALBERTA--Shear Minerals Ltd. (SRM:TSXV) is pleased to announce that it intends to carry out a brokered offering ("Offering") to raise up to $1.75 million through the sale of units ("Units") to qualified purchasers. An aggregate of 2,187,500 Units will be offered at a price of $0.80 per Unit. Each Unit will be comprised of one flow-through common share of Shear ("Common Share") and one half of one non-transferable share purchase warrant. One whole share purchase warrant will entitle the holder to purchase one Common Share at a price of $1.00 for a period of 12 months from issuance.
Canaccord Capital Corporation ("Canaccord") will act as agent for the Offering and the Units will be offered on a commercially reasonable efforts basis. Canaccord has been granted an over-allotment option of 937,500 Units, which if fully exercised will result in additional gross proceeds of $750,000. The Offering is subject to certain conditions, including approval of the TSX Venture Exchange. Closing is expected to occur no later than August 31, 2003. The proceeds from the sale of the Units will be used to fund Shear's diamond exploration programs.
Canaccord will receive a cash commission equal to 8% of the gross proceeds raised under the Offering together with non-transferable agent's warrants to acquire non-flow-through Common Shares equal to 10% of the Units sold. Each agent's warrant will entitle Canaccord to acquire one Common Share at a price of $0.80 for a period of 12 months after the closing of the Offering. Shear has also agreed to pay Canaccord a cash administration fee and a corporate finance fee payable in Common Shares. |
