RE: Trading haltedWhy? Further dilution of common stock...
Newalta Corporation announces that it has entered into an agreement to sell, to Canaccord Capital Corporation and Sprott Securities Inc. as co-lead underwriters, 5,479,453 common shares at $3.65 per common share for aggregate gross proceeds of approximately $20,000,000 on a bought-deal basis. Closing is expected to occur on or about April 4, 2002.
Newalta has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional 2,739,726 common shares at the same offering price. Should the underwriters' option be fully exercised, the total gross proceeds of the issue would be approximately $30,000,000.
Net proceeds from the issue will be used for working capital, debt reduction and to strengthen the Company's financial position to allow it to pursue its growth strategy involving entry into eastern Canada.