Business
Americas Gold and Silver Announces C$25 Million Bought Deal Public Offering
TORONTO, May 5, 2020 /CNW/ - Americas Gold and Silver Corporation ("the "Company") (TSX:USA; NYSE American: USAS) has today entered into an agreement with a syn
About this update from Americas Gold And Silver Corporation
[{"type":"text","content":" TORONTO, May 5, 2020 /CNW/ - Americas Gold and Silver Corporation (\"the \"Company\") (TSX:USA; NYSE American: USAS) has today entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc. and Desjardins Capital Markets (collectively, the \"Underwriters\") pursuant to which the Underwriters have agreed to purchase on a bought deal basis 8,930,000 common shares of the Company (the \"Common Shares\") at a price of C$2.80 per Common Share (the \"Offering Price\"), for aggregate gross proceeds of approximately C$25,000,000 (the \"Offering\"). The Company has also granted an option to the Underwriters, exercisable until 11:59 p.m. on the 30th day following the closing date of the Offering to purchase, from the Company such number of additional common shares of the Company as is equal to 15% of the number of common shares of the Company at the Offering Price for market stabilization purposes and to cover over-allotments, if any. Strategic investors led by Pierre Lassonde and Eric Sprott have indicated that they intend to subscribe for such number of common shares from the offering totalling C$8.75 million. The proceeds from the sale of the Common Shares will be used for working capital and general corporate purposes, which may include the exploration, development and/or improvement of the Company's existing mine properties, including those relating to bringing Relief Canyon into commercial production. The Offering will be made by way of a prospectus supplement (the \"Prospectus Supplement\") to the Company's base shelf prospectus dated June 28, 2019. The Prospectus Supplement will be filed in Alberta, British Columbia and Ontario and, together with the related Base Shelf Prospectus, will be available on SEDAR at www.sedar.com. Closing of the Offering is expected to take place on or about May 13, 2020 and is subject to the receipt of approvals of the Toronto Stock Exchange and the NYSE American LLC and other necessary regulatory approvals. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the \"U.S. Securities Act\"), or under any U.S. state securities laws, and may not be offered, sold, directly or indirectly, or delivered within the \"United States\" or to, or for the account or benefit of, persons in the \...