Each unit consists of one ordinary share in capital of the company and one-half share purchase warrant. Each warrant entitles the holder thereof to acquire one ordinary share at a price of CAN$0.60 until 12 April 2021.
The offering was conducted by a syndicate of underwriters led by both Echelon Wealth Partners Inc. and PI Financial Corp. and including Mackie Research Capital Corp. and Jett Capital Advisors LLC. In connection with closing of the offering, the company paid the underwriters a cash commission equal to 6.5% of the offering’s gross proceeds. In addition to this, Aguia claims that it has granted the underwriters an over-allotment option to purchase up to 2 142 870 further units at the offering price, exercisable for a 30-day period after closing. If the over-allotment option is exercised in full, the gross proceeds from the offering will be approximately CAN$5.75 million.
Sulliden Mining Capital Inc., a large shareholder of Aguia, placed the lead order for the offering.
In the statement, Aguia claims that it is planning to use the net proceeds of the offering to initiate Phase 1 exploration on its Canhada Copper Discovery, finalise permitting at its Tres Estrada phosphate project and for general corporate and working capital purposes.
Justin Reid, the Managing Director, said: “We are extremely pleased with the results of the private placement. Aguia is now well positioned to execute on advancing Tres Estradas through the permitting stage and continuing to explore the exciting new discoveries at Canhada and Big Ranch. We welcome our new Aguia shareholders and look forward to delivering value.”
Securities issued pursuant to the offering, including any ordinary shares that may be issued on exercise of the warrants, will be subject to a statutory hold period that will expire on 13 August 2018.
Read the article online at: https://www.worldfertilizer.com/phosphates/13042018/aguia-closes-can5-million-bought-deal-private-placement-offering/