What kind of financial engineering were those 6.5 million shares deployed in and more importantly what impact does this have on the share price in the short term?
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March 26, 2010
San Gold Corporation Announces Closing of $26 Million "Bought Deal" Private Placement at $4.05 per Share
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San Gold Corporation (Bissett, Manitoba) (TSX-V: SGR) (the "Company") is pleased to announce that it has closed its private placement offering (the "Offering") of 6,551,000 common shares of the Company issued as "flow-through shares" within the meaning of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $4.05 per Flow-Through Share for total gross proceeds to the Company of $26,531,550. The Company initially announced that it would issue only 6,180,000 Flow-Through Shares pursuant to the Offering, but the size of the Offering was increased in order to meet demand from investors.
Dundee Securities Corporation, Cormark Securities Inc., Raymond James Ltd. and CI Capital Markets Inc. (the "Underwriters") acted as underwriters for the Offering. The Flow-Through Common Shares are subject to a hold period of four months and a day from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange. |
