Each one in plain English, with the numbers worked through for a shareholder.
28 Dec 2010capital raising announcement● NeutralMajor
Strateco closed a bought-deal private placement on December 23, 2010 with a syndicate led by Dundee Securities: 9,639,100 units at $0.83 (about $8.0M, including the 3,615,000-unit over-allotment) plus 5,263,200 flow-through shares at $0.95 ($5,000,040), for gross proceeds of $13,000,493 and underwriter fees of $650,025. Sentient Group also bought 1,800,000 units at $0.83 ($1,494,000) under its right to keep its stake in new financings, taking its fully converted and exercised holding to 25,768,422 shares (15.12%), down from the 16.48% shown earlier. The flow-through money goes to exploration on the Matoush project properties and the Mistassini property in Québec.
Strateco closed a CA$15,000,000 private placement with the Sentient Group, made up of 100,000 units at $0.95 and 14,905 interest-free convertible notes of $1,000 each, with warrants attached. The notes mature February 27, 2015 and can be converted at $0.95 per share (15,689,474 shares in total), so existing shareholders could be diluted. Sentient gets a right to keep a 5% holding in future financings and a board nomination, and could hold 16.48% of the shares if it converted and exercised everything. Proceeds are meant for Matoush uranium project work, and $750,000 in fees is paid in units.
Strateco closed a CA$2,500,000 flow-through private placement on December 8, 2009, issuing 2,500,000 shares at $1.00 to three Ontario accredited investors. $2.4M came from an insider holding more than 10% of the shares (through one fund and a related investor), and the money goes to exploration on the Matoush project properties and the Mistassini property in Québec. Finders' fees total $100,000.
What it means for a shareholder
2.5m new shares at $1.00 to raise about $2.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Strateco raised CA$8,000,001.75 by issuing 4,102,565 flow-through common shares at $1.95 each to two accredited investors in Ontario. The money must go to exploration spending on the Matoush and Apple projects in Québec, and a 4% finder's fee is payable to a third party.
