News - $7.5M financing.Amazing, just as I posted my analysis of yesterday's trading, the news came out from PXM. We are in play. They are raising $7.5M at
.50 (which is fantastic price for shareholders), and all the bells and whistles including accelerated conversion when it trades above $1. All the signs pointed to this, now everyone should realize why the selling. Also, I suspect we will see a release indicating all the warrants have been exercised.
It will trade here, the financing will close, then multiple buses will be leaving the terminal in multiple directions, each one developing a prospect.
We have been 100% on the mark with everything this company has done. Good luck to everyone.
Paramax arranges $7.5-million financing with syndicate
2010-05-04 08:18 ET - News Release
Mr. Joseph Casabona reports
Paramax Resources Ltd. has entered an agreement with a syndicate of underwriters co-led by Canaccord Financial Ltd. and Byron Securities Ltd. and including PI Financial Corp., Thomas Weisel Partners and Wellington West Capital Markets Inc. The underwriters have agreed to purchase, on an underwritten private placement basis, 15 million units of the company at a price of 50 cents per unit for total gross proceeds of $7.5-million. Each unit will be composed of one common share and one-half common share purchase warrant, with each whole common share purchase warrant entitling the holder thereof to acquire one Paramax common share at a price of 80 cents for a period of 24 months following closing. The warrants are subject to accelerated expiry if the volume-weighted, average trading price of the company's common shares exceeds $1 for 20 consecutive trading days. If at any time after the date that is four months and one day after the closing date, the volume-weighted, average trading price for the company's common shares on the TSX Venture Exchange (or another stock exchange on which the shares are listed) is $1 or greater for 20 consecutive trading days, the company may, within five days after such an event, provide notice (by issuing a news release) to the holders of the warrants of early expiry, and thereafter, the warrants will expire on the date which is 30 days after the date of the notice to such holders of warrants.
The company intends to use the net proceeds from the financing for capital expenditures related to its Idaho project and for general corporate purposes. The company is granting the underwriters options to buy an additional 1.5 million units at a price of 50 cents, exercisable prior to closing of the offering. In consideration for their efforts, the underwriters will receive a cash commission equal to 6 per cent of the gross proceeds of the offering and be issued compensation options that will entitle them to acquire that number of Paramax common shares that is equal to 6 per cent of the units sold under the offering for a period of 12 months from the closing date. The offering is expected to close on or about May 18, 2010. The offering is subject to certain conditions, including but not limited to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities will be subject to a hold period of four months and one day from the date of issuance.