Raytec Metals arranges $3.6-million private placement
2008-02-13 12:59 MT - News Release
Mr. Brian Thurston reports
RAYTEC ARRANGES INSTITUTIONAL FINANCING
Raytec Metals Corp., subject to regulatory approval, has arranged a non-brokered private placement of eight million units at a price of 45 cents per unit, for gross proceeds of $3.6-million.
Each unit will consist of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant may be exercisable for a period of two years to acquire an additional common share of the company at a price of 75 cents per whole share purchase warrant. The common shares and share purchase warrants issued under this financing will be subject to a four-month hold period from the date of closing, as per TSX Venture Exchange policy.
The warrants will contain a provision which provides that if after June 22, 2008 (being the anticipated end of the four-month hold period), until the expiry date of the warrants, the closing price of the company's shares exceeds $1.25 for 10 consecutive trading days, the company may accelerate the expiry date of the warrants to the date that is 30 days after the day the notice of the new expiry date is provided to the holders of the warrants.
The company has received commitments for the full offering from several institutional investors.
The financing is anticipated to close on or before Feb. 22, 2008.
Finders' fees in the form of cash and/or securities will be paid or issued pursuant to the policies of the TSX Venture Exchange.
The proceeds of the placement will be used for advancement of the company's newly acquired potash properties and for general working capital.
