$30 Million Bought DealVolta Resources Inc. Announces $30 Million Bought Deal
08:12 EDT Thursday, May 13, 2010
TORONTO, ONTARIO--(Marketwire - May 13, 2010) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Volta Resources Inc. ("Volta") (TSX:VTR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including GMP Securities LP, Wellington West Capital Markets Inc., Rodman & Renshaw, LLC and M Partners Inc., pursuant to which the underwriters have agreed to purchase 19,354,840 special warrants (the "Special Warrants") of Volta on an underwritten private placement basis, at a price of $1.55 per Special Warrant for aggregate gross proceeds to the Company of approximately $30 million. Each Special Warrant shall entitle the holder thereof to receive, without payment of additional consideration, one common share (each a "Common Share") of Volta.
The Underwriters will have the option, exercisable in whole or in part, to arrange for the purchase of up to an additional 2,903,160 of the Special Warrants sold under the Offering at the Issue Price. The offering is scheduled to close on or about June 2, 2010.
The Corporation will use its reasonable best efforts to file a preliminary short form prospectus and obtain a receipt for a final short form prospectus within 45 days of the closing for the purpose of qualifying the Common Shares issuable upon exercise of the Special Warrants for distribution to the public as soon as possible with the applicable regulatory authorities in each of the provinces of Canada where Special Warrants are sold. If such receipt for a final short form prospectus is not obtained within 45 days of the closing the special warrants will be exerciseable into 1.05 common shares instead of 1 common share.
The proceeds of the offering will be used for general working capital purposes.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.