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Americas Silver (TSX:USA) has announced a supplementary, concurrent private placement of subscription receipts to meet the residual demand for the original private placement announced May 20, 2016. As quoted in the press release: The Company has agreed to issue up to 33,500,000 Subscription Receipts at a price of C$0.30 per Subscription Receipt, for gross proceeds …
Americas Silver (TSX:USA) has announced a supplementary, concurrent private placement of subscription receipts to meet the residual demand for the original private placement announced May 20, 2016.
As quoted in the press release:
The Company has agreed to issue up to 33,500,000 Subscription Receipts at a price of C$0.30 per Subscription Receipt, for gross proceeds of up to approximately C$10 million (the “Offering”). The Offering will be co‐led by GMP Securities L.P. and Medalist Capital Ltd. (the “Lead Agents”), on behalf of a syndicate of agents including Cormark Securities Inc. and Mackie Research Capital Corporation (together with the Lead Agents, the “Agents”). The Agents have been granted an option (the “Agents’ Option”) exercisable to sell up to an additional 5,025,000 Subscription Receipts.
Each Subscription Receipt will be deemed to be exchanged upon satisfaction of the Release Conditions (as defined below) on or before September 19, 2016 (the “Release Deadline”), without payment of any additional consideration, for one unit (each a “Unit”) of the Company being comprised of one common share of the Company (each a “Common Share”) and one quarter of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant”). Each whole Warrant will entitle the holder thereof to acquire one Common Share (each a “Warrant Share”) at an exercise price of C$0.39 per Warrant Share for a period of 5 years following the closing date of the Offering (the “Closing Date”).
The gross proceeds of the Offering will be deposited in escrow on the Closing Date and shall be released upon the Company having obtained shareholder approval of the Offering in accordance with applicable corporate and securities laws, including approval of the Toronto Stock Exchange and completion of certain other administrative matters (the “Release Conditions”) on or before the Release Deadline. If the Release Conditions are not satisfied on or before the Release Deadline, or if prior to such date the Company advises the Lead Agents or announces to the public that it does not intend to satisfy the Release Conditions, the escrow agent will return to holders of the Subscription Receipts, an amount equal to the aggregate purchase price for the Subscription Receipts held by such holder, together with a pro rata portion of the interest earned on the escrowed proceeds.