Archangel to raise $170M

Archangel Diamond Corporation has priced a private placement offering for the issuance from treasury of 136,000,000 subscription receipts (the “Subscription Receipts”) at a price of US$1.25 per Subscription Receipt for gross proceeds to Archangel of US$170 million (the “Private Placement Offering”). As previously announced, Archangel engaged Canaccord Capital Corporation and RBC Capital Markets (jointly, the “Agents”) to act as agents for the Private Placement Offering.

Each of the Subscription Receipts shall be automatically exchanged, without payment of any additional consideration, for one unit. Each Underlying Unit is comprised of one common share of Archangel (the “Common Shares”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one additional Common Share (each a “Warrant Share”) at a price of C$1.50 per Warrant Share any time prior to the day that is two years from the date of issuance of the Warrant following the satisfaction of the escrow release conditions.

Cencan S.A. (“Cencan”), a wholly-owned subsidiary of De Beers Société Anonyme, is purchasing 92,800,000 of the Subscription Receipts under the Private Placement Offering. Also as previously announced, Firebird Global Master Fund Limited (Firebird), which together with its affiliates constitute Archangel’s second largest shareholder, has expressed a willingness to participate (either directly or through its affiliates) in the Private Placement Offering.

The Corporation has agreed to grant to the Agents an option to arrange for the purchase of up to 24,000,000 additional Subscription Receipts, at the same price and on the same terms and conditions as the Private Placement Offering to raise additional gross proceeds of up to US$30 million, exercisable by the Agents at any time or times, in whole or in part, up to 48 hours prior to the closing of the Private Placement Offering.

Source : http://www.archangeldiamond.com/

Story link: Archangel to raise $170M