$10-million private placement at $2.27Alter NRG arranges $10-million private placement
2007-11-12 13:53 ET - News Release
Mr. Mark Montemurro reports
ALTER NRG CORP. ANNOUNCES $10,000,000 PRIVATE PLACEMENT FINANCING
Alter NRG Corp. has entered into a subscription agreement with Coghill Capital Management LLC, investing on behalf of its clients, in respect of the issuance, on a private placement basis, of 4,405,286 units in the capital of the company at a subscription price of $2.27 per unit. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will entitle Coghill to purchase one common share at a price of $2.27 per share until Dec. 3, 2007. Gross proceeds from the issuance of the units will be approximately $10-million (up to approximately $15-million, if Coghill exercises the entirety of its warrants), and will be used to finance continuing project development and working capital.
Upon completion of the private placement, it is anticipated that 43,398,030 common shares and 2,202,643 warrants will be issued and outstanding. Coghill is at arm's length to the company, and currently holds none of the company's issued and outstanding securities. Upon completion of the private placement, Coghill will hold 4,405,286 common shares and all 2,202,643 warrants (approximately 10.2 per cent of the issued and outstanding common shares on a non-diluted basis, and approximately 13.6 per cent of the issued and outstanding common shares on a diluted basis).
Closing of this proposed financing is anticipated to occur on or about Nov. 16, 2007, and will be conditional upon, among other things, the receipt of all necessary regulatory approvals (including from the TSX Venture Exchange). The common shares and warrants issued pursuant to this private placement will be subject to a four-month statutory hold period.
About Coghill
Coghill is a Chicago-based investment firm, registered with the U.S. Securities and Exchange Commission, that specializes in small-cap value equity management. Coghill conducts fundamental investment research, has a long-term investment horizon and is a value-added shareholder. Coghill seeks to invest with a long-term horizon, and to provide companies with the capital and time they need to realize their fair value. Coghill has generally participated in multiple financings with these companies as they have grown.