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Gold Reserve Inc. closes concurrent cross-border public offerings
Gold Reserve Inc. closes concurrent cross-border public offerings.
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nTORONTO, May 18 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ) announced\ntoday that it has closed its previously announced concurrent cross-border\npublic offerings of US$90,000,000 aggregate principal amount of its 5.50%\nSenior Subordinated Convertible Notes due 2022 ("Convertible Notes") and\n12,800,000 Class A common shares ("Common Shares") at US$5.80 per share\n(Cdn$6.42 per share) for gross proceeds to the Company of US$164,200,000.\nAggregate net proceeds from the offerings were approximately US$154,775,000\nafter deducting underwriting fees and estimated offering expenses.\n\n\nThe Company has granted to the underwriters an option for a period of\n13 days to purchase up to an additional US$13,500,000 principal amount of its\nConvertible Notes and an option for a period of 30 days to purchase up to an\nadditional 1,920,000 Common Shares at US$5.80 per share, in each case, to\ncover over-allotments, if any. If the underwriters fully exercise the\nover-allotment options to purchase additional Convertible Notes and Common\nShares, Gold Reserve will receive additional net proceeds of approximately\nUS$23.4 million after deducting underwriting fees.\n\n\nThe Convertible Notes were offered and sold to the public at their stated\nprincipal amount (US$1,000 per Convertible Note) and will have a semi-annual\ncash interest coupon of 5.50% per year. Each US$1,000 principal amount of\nConvertible Notes will be convertible at the option of the holder into\n132.6260 Common Shares, subject to adjustment, representing an initial\nconversion price of US$7.54.\n\n\nJ.P. Morgan Securities Inc. and RBC Capital Markets acted as joint book\nrunning managers for the offerings with Cormark Securities Inc. acting as\nco-manager.\n\n\nThe Company intends to use the net proceeds from the offerings to fund\nconstruction activities, equipment purchases and ongoing development of its\nBrisas project.\n\n\nCopies of the prospectuses relating to the Convertible Notes and the\nCommon Shares may be obtained from the underwriters or their respective U.S.\nor Canadian affiliates as follows: J.P. Morgan Securities Inc. at National\nStatement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level,\nBrooklyn, NY 11245, telephone: 718-242-8002; RBC Capital Markets - in Canada,\ncall 416-842-5345, in the U.S., RBC Capita...