More sharesMagIndustries arranges $30-million financing
2009-06-01 16:58 ET - News Release
Mr. Rich Morrow reports
MAGINDUSTRIES CORP. ANNOUNCES EQUITY FINANCING
MagIndustriesCorp. has filed a preliminary short-form prospectus for a new issue ofcommon shares of the company in certain provinces of Canada. Theoffering is anticipated to raise approximately $30-million in grossproceeds prior to the overallotment option described below.
The offering is being led by Cormark Securities Inc. and includes a syndicate of dealers.
MagIndustrieshas also granted the underwriters an option to purchase up to anadditional 15 per cent of the common shares sold under the offering tocover overallotments, if any, and for market stabilization purposes.The overallotment option is exercisable in whole or in part for aperiod of 30 days following the closing of the offering.
Theoffering is scheduled to close on or about June 16, 2009, and issubject to certain conditions including, but not limited to, thereceipt of all necessary approvals, including the approval of the TSXVenture exchange.
The net proceeds of the offering will beapplied toward the construction of Phase I of the company's potashproject near Mengo in the Kouilou province of the Republic of Congo,including construction of a portion of the natural gas pipeline,purchasing of materials, services and equipment, and acceleration ofengineering work.
We seek Safe Harbor.