Business
PINNACLE COMPLETES RIGHTS OFFERING AND ENTERS INTO FINANCIAL SERVICES AGREEMENT
PINNACLE COMPLETES RIGHTS OFFERING AND ENTERS INTO FINANCIAL SERVICES AGREEMENT
About this update from Barrick Mining Corporation
[{"type":"text","content":"\nPINNACLE COMPLETES RIGHTS OFFERING AND ENTERS INTO FINANCIAL SERVICES AGREEMENT\n\n\n May 7, 2010 (TheNewswire.ca) -- Vancouver, British Columbia - MAY 6, 2010 - Pinnacle Mines Ltd. (TSXV: PNL)(\"Pinnacle\" or the \"Company\") announces that further to its press releases dated February 8, 2010 and March 29, 2010, the Company has completed its previously announced rights offering (the \"Offering\").Pursuant to the Offering, Pinnacle will issue in total 91,576,134 common shares (\"Common Shares\") at a subscription price of $0.05 per Common Share (the \"Subscription Price\"), providing gross proceeds of $4,578,807. The Company's total issued and outstanding Common Shares will increase to 183,152,268.As described in the prospectus for the Offering, Progress Advanced Holdings Ltd. (\"Progress Advanced\") agreed to purchase from the Company at the Subscription Price any Common Shares that were not otherwise subscribed for under the Rights Offering (the \"Standby Commitment\"). In consideration for Progress Advanced agreeing to provide the Standby Commitment, the Company granted to Progress Advanced the right to subscribe for up to 22,894,033 additional Common Shares at the Subscription Price (the \"Standby Fee Option\") for a period of six months from the closing of the Offering. Because of the overwhelming interest in the Offering by shareholders, all rights in connection with the Offering were exercised by shareholders. If Progressed Advanced exercises their Standby Fee Option they will hold approximately 11.1% of the issued and outstanding Common Shares.The Company also announces that it has entered into a financial services advisory agreement (the \"Advisory Agreement\") with Baron Capital Limited (\"Baron\"). Baron is a licensed merchant bank licensed to carry out type 1 (Dealing in Securities) and type 6 (Advising on Corporate Finance) which are regulated activities under the Securities and Futures Ordinance of Hong Kong. Baron will provide various consulting services, including general corporate and financial advice as to strategies, structures and alternatives to provide the Company exposure to potential new markets and funding opportunities, including potential acquisitions or divestitures, merger or partnership opportunities or alternate listings for the Company's securities. Upon signing the Advisory Agreement, Baron rec...