Canaco Resources completes $119.88-million financiCanaco Resources completes $119.88-million financing
Canaco Resources Inc (C:CAN)
Shares Issued 169,610,353
Last Close 3/21/2011 $5.28
Tuesday March 22 2011 - News Release
Mr. Andrew Smith reports
CANACO COMPLETES $120 MILLION TREASURY BOUGHT DEAL FINANCING AND $43 MILLION SECONDARY BOUGHT DEAL FINANCING
Canaco Resources Inc. has completed its previously announced bought deal financing for aggregate gross proceeds to Canaco of $119.88-million and aggregate gross proceeds to SinoTech (Hong Kong) Corp. Ltd. of $43.2-million. A syndicate of underwriters including Canaccord Genuity Corp. and TD Securities Inc. purchased an aggregate of 30.2 million common shares of the company, of which eight million common shares were purchased on a secondary basis from SinoTech, at a price of $5.40 per share. The company has also granted the underwriters an overallotment option, exercisable for a period of up to 30 days following the closing, to purchase from the company up to an additional 3.33 million common shares at a price of $5.40 per share for additional gross proceeds to Canaco of up to $17,982,000.
Following the completion of the financing, SinoTech currently holds 40 million common shares, representing approximately 20 per cent of the company on an undiluted basis.
Canaco has also released a correction to the price of 7,225,000 options granted on Dec. 3, 2010, to certain directors, officers and consultants. The exercise price will be $4.88 per share, rather than $4.56 per share, and the expiry date of Dec. 3, 2015, will remain the same.
We seek Safe Harbor.
© 2011 Canjex Publishing Ltd.