Financing $1.31. Ouch for existing shareholders. Last at $1.71
Polaris Minerals Corporation (the "Company") (TSX:PLS) announces that it has entered into an agreement with Dundee Securities Ltd. ("Dundee") who, together with GMP Securities L.P. (collectively, the "Underwriters"), has agreed to purchase, on a bought deal basis, 11,500,000 Common shares of the Company (each a "Common Share") at a price of $1.31 per share (the "Offering"). In addition, the Company has granted the Underwriters an over-allotment option to purchase up to an additional 1,725,000 Common Shares, exercisable at any time up to 30 days from the closing of the Offering at $1.31 per share (the "Option"). In the event that the Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be approximately $17.3 million.
The Company plans to use the net proceeds from the Offering to repay in full the Company's outstanding Senior Secured Notes in the principal amount of $8.1 million carrying a 12% interest rate, to pursue the entry for its products into Southern California through the development of its leased site in the Port of Long Beach, and for general corporate purposes. |
