I quadrupled my share position in edv.to today after they announced issuing units for about $100MM canadian.
George Town, Grand Cayman -- In connection with its public offering announced December 16, 2008, Endeavour Financial Corporation ("Endeavour" or the "Corporation") announced today that that it has entered into an underwriting agreement with a syndicate of underwriters co-led by GMP Securities L.P. and Canaccord Capital Corporation (the "Underwriters") to sell 56,500,000 Units (the "Units") at a price of $1.77 per Unit to raise gross proceeds of $100,005,000 pursuant to a short form prospectus (the "Offering"). Each Unit will consist of one common share of the Corporation and one-half of one common share purchase warrant. Each whole common share purchase warrant (a "Warrant") will entitle the holder to purchase one common share of the Corporation for a period of five years following the closing of the Offering at price of $2.50 per common share. In addition, Endeavour has also granted the Underwriters an over-allotment option, exercisable in whole or in part prior to the closing, to purchase up to an additional 8,475,000 Units for additional gross proceeds of $15,000,750. The Offering is subject to certain conditions, including regulatory and TSX approval.
The Corporation intends to use the net proceeds from the Offering for investments in the natural resource sector, which will predominantly include investments in equity, warrants and/or quasi-equity or debt securities in junior and intermediate natural resource companies and possibly directly into the acquisition of mining projects or royalties.
The Corporation anticipates that the resource capital markets will continue to experience challenges due to the global economic slowdown. This environment presents unique investment opportunities for the Corporation to support its advisory services with strategic capital investments in an effort to build shareholder value. The Corporation will continue its existing investment strategy of focusing on resource projects in non-mature markets, where value creation opportunities are often the greatest. The Corporation utilizes the extensive insights, experience and contacts of Fiore Financial Corporation (Frank Giustra, President and CEO) as its exclusive advisor in assisting in sourcing and developing new investment opportunities. Currently, the Corporation believes there are several attractive investment opportunities in gold and gold-related mining projects and companies.
The Corporation and Fiore's longer term objectives include pursuing a larger-scale investment program focused on these gold-related opportunities, and as part of this objective it may explore the opportunity to source third-party capital in a corporate structure yet to be determined, which may include a limited partnership fund or any other mechanism, in which a portion of these proceeds may be invested by the Corporation.
Closing of the Offering is expected to occur on or about February 4, 2009.
The Units, common shares and Warrants offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Endeavour Financial Corporation
Endeavour is an independent merchant banking company focused on the global natural resources sector. The Corporation offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also provides equity and bridge loans in support of clients, transactions, and other market opportunities. Accessing its global industry networks, Endeavour creates and launches new growth companies as both an advisor and investor. |
