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Gold Reserve's underwriters exercise over-allotment option
Gold Reserve's underwriters exercise over-allotment option.
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, May 23 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ)\nannounced today that the underwriters of its May 18, 2007 public offering of\nClass A common shares ("Common Shares") and senior subordinated convertible\nnotes ("Convertible Notes") have exercised over-allotment options and will\npurchase an additional US$13,500,000 principal amount of Convertible Notes and\n962,300 Common Shares at US$5.80 per share. The Convertible Notes were offered\nand sold to the public at their stated principal amount of US$1,000 per\nConvertible Note and have a semi-annual cash interest coupon of 5.50% per\nyear. Each US$1,000 principal amount of Convertible Notes is convertible at\nthe option of the holder into 132.6260 Common Shares, subject to adjustment,\nrepresenting an initial conversion price of US$7.54.\n\n\nThe Company will receive aggregate net proceeds from the exercise of the\nover-allotment options of approximately US$18 million after deducting\nunderwriting 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\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 in any jurisdiction in which such offer, solicitation or sale would\nbe unlawful prior to registration or qualification under the secur...