RNC Minerals Announces $18 Million Bought Deal Financing 2019-08-26 16:02 ET - News Release
TORONTO, Aug. 26, 2019 (GLOBE NEWSWIRE) -- RNC Minerals (TSX: RNX) ("RNC" or the “Company") is pleased to announce that it has entered into an agreement with Haywood Securities Inc. ("Haywood") as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters (together with Haywood, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 45,000,000 common shares of the Company (the "Common Shares"), at a price of $0.40 per Common Share (the “Issue Price”), for gross proceeds to the Company of $18,000,000 (the "Offering").
The Company has granted the Underwriters an over-allotment option, exercisable at the Issue Price for a period of 30 days following the closing of the Offering, to purchase up to an additional 6,750,000 Common Shares (representing 15% of the Common Shares offered pursuant to the Offering) to cover over-allotments, if any, or for market stabilization purposes.
The net proceeds received by the Company from the Offering will be used for the continued ramp up of production at Beta Hunt and integration with the Higginsville Gold Operations, and for working capital and general corporate purposes.
The Common Shares under the Offering will be offered by way of short form prospectus in each of the provinces of Canada, including Qubec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions. The Common Shares will not be offered or sold in the United States except under Rule 144A or Regulation D or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.
The Offering is scheduled to close on or about September 19, 2019 and is subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.