Labrador Iron Mines Holdings preliminary prospectus
2007-11-22 17:24 MT - Preliminary Prospectus
TSX bulletin 2007-1650
An application has been conditionally approved by the Toronto Stock Exchange for the listing of the common shares and the common share purchase warrants of the company subject to completion of a proposed initial public offering of units (each unit comprising one common share and one-half of one warrant which will separate immediately upon their issuance) as described in the company's amended and restated preliminary prospectus dated Oct. 11, 2007. It is anticipated that, in the next few days, the company will file a final prospectus for its offering of units.
As soon as possible after the final prospectus is cleared by the relevant securities commissions and the TSX has been advised of the definitive pricing details of the offering, the TSX will post the common shares and the warrants for trading on an if, as and when-issued basis under the trading information set out below. Before the common shares and the warrants are posted for trading on such basis, the TSX will issue a trader note confirming both the pricing and the expected closing date for the offering. If and when the offering closes, the common shares and the warrants of the company will be listed on the TSX.
Common share symbol: LIR
Common share Cusip No.: 505435 10 7
Common share trading currency: Canadian dollars
Warrant symbol: LIR.WT
Warrant Cusip No.: 505435 11 5
Warrant trading currency: Canadian dollars
Each warrant will entitle the holder to purchase one common share at an anticipated price of $5 per share for a period of 24 months from the date of closing of the offering.
Temporary market-maker: Byron Securities Ltd.
Other markets: None
Settlement: Subject to the closing of the offering: (i) all trades in LIR and LIR.WT on and before the fourth trading day preceding the closing date will be for special settlement on the closing date and will appear on the settlement report from CDS Clearing and Depository Services Inc. (CDS); and (ii) all trades in LIR and LIR.WT for each of the three trading days preceding the closing date will be for special settlement three business days after the trade date and will appear on the settlement report from CDS. If the offering by way of prospectus does not close, all of the if, as and when-issued trades will be cancelled. No securities will be delivered and no money will be owed by purchasers to sellers. Parties who are entitled to receive common shares and warrants under the offering may sell such securities in the if, as and when-issued market without being subject to restrictions on short sales. Parties who are not entitled to receive common shares and warrants under the offering must comply with the short sale rule in all respects for any sales they make in the if, as and when-issued market.
If and when the offering closes, there will be no further trading in LIR and LIR.WT on an if, as and when-issued basis, and the common shares and the warrants issued at such closing will trade on a regular settlement basis.
Incorporation: The company was incorporated by articles of incorporation dated May 17, 2007, under the Business Corporations Act (Ontario).
Fiscal year-end: March 31
Nature of business: The company was established to be a holding company and to carry on the business of Labrador Iron Mines Ltd. (LIM). LIM is a natural resource company with the primary business objective of exploring for and developing direct shipping iron ore deposits on properties in which it holds interest located in and around the Labrador trough in the province of Newfoundland and Labrador near Schefferville, Que.
Transfer agent and registrar: Olympia Trust Co. at its principal office in Toronto
Dividends: The company has not, since the date of its incorporation, declared or paid any dividends on common shares and does not currently have a policy with respect to the payment of dividends. The payment of dividends will depend on the earnings, if any, and the company's financial condition and other factors as the directors of the company consider appropriate.
Initial public offering: Pursuant to the terms of the prospectus, approximately 11,473,000 units are being offered to the public at a price anticipated to be $4 per unit by Canaccord Capital Corp. as agent. In addition, the agent has been granted: (i) an overallotment option to purchase a number of additional units equal to 15 per cent of the units sold pursuant to the offering; and (ii) compensation warrants to purchase that number of units equal to 6.5 per cent of the number of units issued pursuant to the offering including those sold upon exercise of the overallotment option.
