RE:Need money soonMrBigger wrote: will use runup to finance IMO. SBB just did.
Right on. PP at $2.50 which explains the drop in sp....
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Continental Gold arranges $25M bought deal offering
2016-05-03 16:45 ET - News Release
Mr. Paul Begin reports
CONTINENTAL GOLD ANNOUNCES $25 MILLION BOUGHT DEAL
Continental Gold Inc. has entered into an agreement with a syndicate of underwriters co-led by TD Securities Inc. and Clarus Securities Inc. pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 10 million units of the company at a price of $2.50 per unit, for gross proceeds of approximately $25-million. The company will also grant to the underwriters an overallotment option to increase the size of the offering by up to an additional 15 per cent, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the offering.
Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at a price of $4.75 during the period ending 18 months following the closing of the offering. In the event that the closing price of the company's common shares on the Toronto Stock Exchange is greater than $6 per share for a period of 20 consecutive trading days at any time after closing of the offering, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the company.
In consideration for their services, the underwriters will receive a cash commission equal to 5.0 per cent of the gross proceeds of the offering.
The company intends to use the net proceeds of the offering to finance exploration and development expenditures at the Buritica project and for working capital and general corporate purposes.
Closing of the offering is anticipated to occur on or about May 25, 2016, and is subject to the receipt of applicable regulatory approvals, including approval of the Toronto Stock Exchange.
The common shares will be offered by way of a short-form prospectus in each of the provinces of Canada, except Quebec.
We seek Safe Harbor.
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