Stornoway Files Subscription Receipt Offering Final Prospectus

Stornoway Diamond Corporation (TSX:SWY) filed a final prospectus in all of the provinces of Canada relating to Stornoway’s marketed public offering of subscription receipts previously announced on April 9, 2014.

Under the terms of the Offering, Stornoway will issue 188.6m subscription receipts at a price of C$0.70 per subscription receipt for gross proceeds of C$132m. Each subscription receipt will entitle the holder to receive, upon satisfaction or waiver of all escrow release conditions described in the final prospectus, one Stornoway common share and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant will entitle the holder to purchase one common share of Stornoway at a price of C$0.90 for a period of two years from their date of issuance. In addition, an aggregate of US$79m of convertible unsecured notes1 will be issued by Stornoway to Orion and several other convertible note purchasers on a private placement basis. The total proceeds from the issuance by Stornoway of subscription receipts under the Offering and convertible unsecured notes will be C$219m2.

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