CanAm Coal Announces Proposed $14 million Brokered Private Placement Financing
01 Maio 2014 - 9:02AM
Access Wire
CALGARY, AB / ACCESSWIRE / May 1, , 2014 / CanAm Coal Corp.
(COE:TSX-V) ("CanAm" or the "Company") is pleased to announce that
the Company has engaged Richardson GMP Limited ("Richardson GMP")
to act as broker with respect to a proposed "commercially
reasonable efforts" $14 million private placement.
Richardson GMP will sell by private placement on a commercially
reasonable efforts basis up to 14,000 units ("Units") of the
Company at a price of $1,000 per unit for gross proceeds of up to
$14 million (the "Offering").
Each Unit is comprised of a $1,000 principal amount of 12%
non-convertible secured debentures ("Debentures") and 670 common
share purchase warrants ("Warrants"). Each Warrant entitles the
holder to purchase one common share of CanAm ("Common Share") at a
price equal to the volume weighted average price ("VWAP Price")
plus 30%, for a period of 4 years from the closing date. The VWAP
price is the amount that is the volume weighted closing price of
the Common Shares on the TSX Venture Exchange for the 10 day period
ending on the business day prior to the closing date of the
Offering (the "Closing Date").
The Debentures will mature 48 months from the date of issuance
of the Debentures and will bear interest at a rate of 12 percent
per year, payable semi-annually. The Debentures will include
certain provisions for repayment of the principal. Starting on the
25th month from the day on which the Debentures are issued, the
principal amount of the Debentures will be repaid at a rate of
$200,000 per month, payable quarterly, with such payments being
made pro rata on all outstanding Debentures. The Debentures will
also have optional early redemption provisions in favour of CanAm
starting in month 13.
CanAm intends to use the net proceeds from the Offering for the
repayment of its 10% and 9.5% debentures that mature on May 8 and
May 9, 2014, respectively, and for general working capital
purposes.
Richardson GMP will be paid a broker's fee and receive broker's
warrants in compensation for acting as the broker in connection
with the Offering.
The closing date of the Offering is expected to occur on or
about May 9, 2014 and is subject to receipt of all necessary
regulatory approvals including approval of the TSX Venture
Exchange.
Jos De Smedt, President & CEO commented on the overall
financing package announced herewith and yesterday: "The impact of
the additional equipment financing and the extension of the
equipment financing loan term, which were announced yesterday,
together with a successful refinancing of the May debentures and
other measures taken by the Company will reduce the working capital
deficit of the Company by approximately $17 million. In addition,
our commitment, as part of the equipment refinancing package, to a
debt to equity conversion with respect to our 2012, 9.5% debentures
maturing in 2016, will reduce long-term debt by a minimum of $6.5
million. Combined these measures will put us in a significantly
improved financial position and provides us with the necessary
financial flexibility to enable us to execute on our business
plan."
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any state in the United States in which
such offer, solicitation or sale would be unlawful. The securities
referred to herein have not been and will not be registered under
the United States Securities Act of 1933, as amended, and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
For Further Information:
CanAm Corporate Office:
Jos De Smedt, President & CEO
Tel: 403.262.3797
Toll Free: 1.877.262.5888
Email: jdesmedt@canamcoal.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Advisory Respecting Forward-Looking Statements:
This news release contains certain "forward-looking information
and statements" within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "may", "will", "project",
"should", "believe", "plans", "intends", "confident", "might" and
similar expressions are intended to identify forward-looking
information or statements. In particular, this new release contains
forward looking statements pertaining to: the terms of the Offering
and the Units to be issued thereunder; the anticipated closing date
of the Offering; the amount of proceeds from the Offering; and the
use of the proceeds from the Offering. Various assumptions were
used in drawing the conclusions contained in the forward-looking
statements throughout this news release.
The forward-looking information and statements included in this
news release are not guarantees of future performance and should
not be unduly relied upon. Forward-looking statements reflect
management's current beliefs and assumptions, based on information
currently available to management. A number of factors could cause
actual results to differ materially from the results discussed in
the forward-looking statements, many of which are beyond the
control of the Company. Among the material factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are: that the information is of a
preliminary nature and may be subject to further adjustment;
failure of the proposed Offering to proceed on the terms agreed to;
failure to obtain the required approvals for the Offering; the
failure to sell all Units offered pursuant to the Offering; failure
to convert the required amount of debentures pursuant to the terms
of the U.S. debt facility; as well as those factors discussed in or
referred to under the heading "Risk and Uncertainties" in the
Company's Management's Discussion & Analysis dated November 26,
2013 available at www.sedar.com. Such information and statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information or
statements.
The Company cautions that the foregoing list of assumptions,
risks and uncertainties is not exhaustive. The forward-looking
information and statements contained in this news release speak
only as of the date of this news release, and the Company assumes
no obligation to publicly update or revise them to reflect new
events or circumstances, except as may be required pursuant to
applicable securities laws.
SOURCE: CanAm Coal Corp.
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