Each one in plain English, with the numbers worked through for a shareholder.
28 June 2019capital raising announcement● NeutralMajor
The rights offering closed, with 682,813,838 new shares issued for gross proceeds of about US$265 million at US$0.3881 per share. The proceeds were used to repay the Glencore debt, pay Glencore's standby fee and cover expenses, resolving the debt thread from March. Glencore bought 627,247,983 shares in the offering and now holds 720,084,055 shares, about 71.6% of the company (about 69.0% fully diluted), up from 28.8%. The rest of the shareholders were diluted unless they exercised their rights.
27 June 2019capital raising announcement● NeutralMajor
Preliminary results show the rights offering closed its subscription period fully covered, with Glencore expected to buy about 430.6 million shares under its backstop, ending with roughly 71.66% of the shares. Holders who didn't exercise their rights keep the same number of shares but own a smaller percentage. At the June 26, 2019 annual meeting all company motions passed: nine directors, including CEO Jonathan Cherry, were elected and PricewaterhouseCoopers was re-appointed as auditor. Results are preliminary and subject to final count.
The rights offering formally began. Rights trade on the TSX as POM.RT until noon on June 26, 2019 and on NYSE American as PLM.RT through June 21, 2019, and unexercised rights expire at 5:00 pm Eastern on June 26 with no value. Terms are unchanged from the final prospectus: 2.119069 shares per right at US$0.3881, backstopped by Glencore.
28 May 2019capital raising announcement● NeutralMajor
PolyMet filed its final prospectus and set the terms of the rights offering: each share held on June 3, 2019 gets one right, and each right buys 2.119069 new shares at US$0.3881, with rights expiring June 26, 2019. The company says it expects about US$251.3 million of Glencore debt to be repaid at closing, with about US$7.7 million for Glencore's standby fee and about US$6.0 million of expenses. Shareholders who don't exercise their rights face dilution, which the filing says may be significant. This settles the pricing and timing left open in March.
7 May 2019capital raising announcement● NeutralMajor
PolyMet filed a preliminary prospectus and an SEC Form F-10 for the rights offering flagged in March, aiming to raise about US$265 million. Glencore (28.8% shareholder) signed a standby agreement to buy any unsubscribed shares, for a fee of about US$7.7 million. Proceeds are meant to repay Glencore's debt (US$165 million principal plus about US$77.8 million accrued interest at March 31, 2019), the fee and expenses. Price is set at a 20% discount to a five-day average share price, and shareholders who don't participate would own a smaller share. Still subject to TSX, NYSE American and U.S. antitrust clearance.
