Info re: deal TORONTO, ONTARIO--(Marketwired - Jan. 24, 2018) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Newstrike Resources Ltd. (TSX VENTURE:HIP) ("Newstrike" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") co-led by INFOR Financial Inc. and Cormark Securities Inc. pursuant to which the Underwriters have agreed to purchase 39,000,000 units (the "Units") of the Company on a "bought deal" basis pursuant to a short form prospectus to be filed, subject to all required regulatory approvals, at a price per Unit of $1.32 (the "Issue Price") for gross proceeds of $51,480,000 (the "Offering").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $7,722,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $59,202,000.
Each Unit will be comprised of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each full Warrant shall entitle the holder thereof to purchase one additional Common Share at an exercise price of $1.75, for a period of 24 months following the closing of the Offering.
The Company intends to use the proceeds of the Offering to fund strategic growth opportunities and for general and corporate purposes.
In addition to a cash commission, the Underwriters will be receiving compensation warrants exercisable into Units with an exercise price equal to the Offering Price.
The closing date of the Offering is scheduled to be on or about February 14, 2018 and is subject to certain customary conditions, including the receipt of all necessary approvals, the approval of the TSX Venture Exchange and the approval of applicable securities regulatory authorities.
The Units will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 - Short Form Prospectus Distributions. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933 Act", and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.
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