Pearl Exploration to raise C$40 mln from warrant sale
Tue Apr 7, 2009 10:25am EDT
* To sell 45.5 mln warrants at C$0.88/warrant for C$40 mln
* To use proceeds for capital expenditures
April 7 (Reuters) - Canada's Pearl Exploration and Production Ltd (PXX.TO: Quote, Profile, Research, Stock Buzz) said it plans to raise C$40 million by selling 45.5 million special warrants to a syndicate of underwriters led by GMP Securities.
The financing is structured on a bought deal basis -- in which an underwriter or syndicate buys shares from an issuer before selling them on to the public.
Under the offering, which is expected to close on or about April 20, the company would sell each warrant at 88 Canadian cents.
The underwriters have been granted an over-allotment option to purchase up to 6.8 million additional special warrants. If the over-allotment option is fully exercised, gross proceeds from the offering will be about C$46.1 million, the company said in a statement.
Pearl Exploration said it plans to use the net proceeds from the offering to fund capital expenditures and for general corporate purposes.
The underwriters included Canaccord Capital, RBC Dominion Securities and Tristone Capital, the company said.
Shares of the company were down 2 Canadian cents at 93 cents Tuesday morning on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore, Editing by Dinesh Nair)
