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Gold Reserve Inc. closes underwriters exercise of over-allotment option
Gold Reserve Inc. closes underwriters exercise of over-allotment option.
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, May 29 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ)\nannounced today that it has closed the previously announced exercise by the\nunderwriters of their over-allotment options to purchase an additional\nUS$13,500,000 principal amount of senior subordinated convertible notes\n("Convertible Notes") and 962,300 Class A common shares ("Common Shares") at\nUS$5.80 per share. The Company will receive aggregate net proceeds from the\nexercise of the over-allotment options of approximately US$18 million after\ndeducting underwriting fees and estimated expenses.\n\n\nThe Company intends to use the net proceeds from the offerings and the\nexercise of the over-allotment options to fund construction activities,\nequipment purchases and ongoing development of its Brisas project.\n\n\nThe Company granted the over-allotment options to the underwriters in\nconnection with the Company's May 18, 2007 public offering of Convertible\nNotes and Common Shares. The Convertible Notes were offered and sold to the\npublic at their stated principal amount of US$1,000 per Convertible Note and\nhave a semi-annual cash interest coupon of 5.50% per year. Each US$1,000\nprincipal amount of Convertible Notes is convertible at the option of the\nholder into 132.6260 Common Shares, subject to adjustment, representing an\ninitial conversion 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\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 Capital Markets Corporation, Attention:\nProspectus Department, One Liberty Plaza, 165 Broadway, New York, NY, 10006,\n(fax requests - 212-428-6260); or Cormark Securities Inc. - in Canada, call\n416-943-6405, in the U.S., call 1-800-461-2275.\n\n\nThis press release shall not constitute an offer to sell or the\nsolicitation of an offer to buy nor shall there be any sale of these\nsecurities ...