Loyalist arranges $7-million placement Loyalist arranges $7-million placement
Ticker Symbol: C:LOY
Loyalist arranges $7-million placement
Loyalist Group Ltd (C:LOY)
Shares Issued 154,732,423
Last Close 2/17/2015 $0.475
Wednesday February 18 2015 - News Release
Mr. Douglas Chornoboy reports
LOYALIST GROUP LIMITED ANNOUNCES PROPOSED PRIVATE PLACEMENT
Loyalist Group Ltd. has entered into an agreement with a syndicate of agents led by Paradigm Capital Inc. and Cormark Securities Inc., and including Canaccord Genuity Corp. and Haywood Securities Inc., to undertake a private placement of common shares for gross proceeds of a minimum of up to $7-million. The offering will be made on a fully marketed private placement basis and the common shares will be priced in the context of the market.
In connection with the offering, the agents will receive a cash commission equal to 6 per cent of the gross proceeds of the offering, payable on the closing of the offering. In addition, the company will grant the agents, on the closing of the offering, non-transferable compensation options to acquire that number of common shares as is equal to 5 per cent of the aggregate number of common shares issued pursuant to the offering. The compensation options will be exercisable for a period of 24 months from the closing of the offering at an exercise price that is equal to the issue price of the common shares under the offering.
The company anticipates that the proceeds of the offering will be used for general working capital purposes and the financing of potential acquisitions.
Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities. All securities issued by the company in connection with the offering will be subject to a statutory four-month hold period.
We seek Safe Harbor.
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