First Tidal Acquisition Corp T.AAA

News

[justin_a_lyesse]

 

Allana Potash Announces Closing of $20 Million Bought Deal Financing

02 Feb 2012 08:49 ET
Marketwire Canada - NFD

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Allana Potash Corp (TSX:AAA) ("Allana" or the "Company") is pleased to announce that it has closed its previously announced public offering (the "Offering") of common shares (the "Common Shares") of the Company. Pursuant to the terms of the Offering, the Company has issued 25,000,000 Common Shares at a price of
.80 per share, for aggregate gross proceeds of $20,000,000.

The Common Shares were sold pursuant to an underwriting agreement with a syndicate of underwriters led by Dundee Securities Ltd., and including National Bank Financial Inc., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., and Fraser Mackenzie Limited (collectively, the "Underwriters").

Allana has granted the Underwriters an option, exercisable in whole or in part at the discretion of the Underwriters, for a period of 30 days from the closing date of the Offering, to purchase up to an additional 15% of the Common Shares sold pursuant to the Offering, to cover over-allotments, if any, and for market stabilization purposes.

The net proceeds of the Offering will be used for the completion of a feasibility study and other related studies with respect to the Danakhil Potash Project (also referred to as the Dallol Potash Project) and for working capital and general corporate purposes.

The Offering has been made in all provinces of Canada other than Quebec, and is subject to the approval of regulatory authorities. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the 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 jurisdiction in which such offer, solicitation or sale would be unlawful.