pp closedStornoway Announces Closing of Flow-Through Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2010) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Stornoway Diamond Corporation (TSX:SWY) ("Stornoway" or the "Company") is pleased to announce that it has closed a private-placement financing with a syndicate of underwriters led by Desjardins Securities Inc. and including Canaccord Genuity Corp. (collectively, the "Agents"), consisting of 8,775,000 "flow-through" common shares ("Flow-Through Shares") for gross proceeds of $5,001,750. The Flow-Through Shares were priced at
.57 per share and are subject to a hold period and may not be traded until October 30, 2010 except as permitted by applicable securities legislation and the rules of the Toronto Stock Exchange.
Insiders of the Company subscribed for a total of 86,824 shares on the same terms as the arm's length subscribers.
The Agents received a cash commission equal to 6.5% of the gross proceeds raised and Compensation Options equal to 6% of the number of Flow-Through Shares sold. A total of 526,500 Compensation Options were issued, each of which is exercisable to purchase one common share at
.57 per share until December 29, 2011 and are subject to the same hold period as the Flow-Through Shares.