Fission Uranium (FCU-V) March 10, '14 has entered into a letter of engagement with Dundee Securities Ltd. on behalf of a syndicate of underwriters including Cantor Fitzgerald Canada Corp., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., TD Securities Inc., Clarus Securities Inc. and Cormark Securities Inc., under which the underwriters have agreed to purchase 15,625,000 special warrants, by way of a private placement on a bought-deal basis, subject to all required regulatory approvals, at a price per special warrant of $1.60, for total gross proceeds of $25-million.
The underwriters have been granted the option to purchase up to an additional 15 per cent of the offering, exercisable in whole or in part at any time up to 48 hours prior to the closing date.
Each special warrant will be exercisable one common share in the capital of the company by the holders thereof at any time after the closing date for no additional consideration, and all unexercised special warrants will be deemed to be exercised at 4 p.m. (Toronto time) on the earlier of: (a) the date that is four months and one day following closing, and (b) the first business day after a receipt is issued for a final prospectus by the securities regulatory authorities where the special warrants are sold, qualifying the common shares to be issued upon exercise.
The company shall use its reasonable best efforts to obtain such receipt for the final prospectus within 30 calendar days following the closing.
The net proceeds from the special warrants will be used for exploration and development, and for working capital and general corporate purposes.
In connection with the offering, the underwriters will receive a cash commission equal to 5 per cent of the gross proceeds raised under the offering (inclusive of the option) and that number of non-transferable broker warrants equal to 5 per cent of the number of special warrants sold (inclusive of the option). Each broker warrant will be exercisable into one common share of the company for a period of 24 months from the closing date at a price of $1.60 per common share.
The closing date of the offering is scheduled on or about April 1, 2014. All securities issued will be subject to a statutory hold period expiring on the earlier of: (a) the date that is four months and one day following the closing date, and (b) the first business day after a receipt is issued for a final prospectus by the securities regulatory authorities. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals. |
