Business
Sprott Resource Corp. announces closing of Stonegate Agricom Ltd. initial public offering
Sprott Resource Corp. announces closing of Stonegate Agricom Ltd. initial public offering
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Apr. 28, 2010 (Canada NewsWire Group) -- /CNW/ -- (TSX: SCP) - Sprott Resource Corp. (\"SRC\") is pleased to announce that Stonegate Agricom Ltd. (\"Stonegate\") (TSX: ST) has closed its initial public offering of 45,000,000 units (the \"Units\") of Stonegate at a price of $1.00 per Unit for gross proceeds of $45,000,000 (the \"Offering\"). Each Unit consists of one common share (a \"Common Share\") of Stonegate and one-half of one common share purchase warrant (each whole common share purchase warrant, a \"Warrant\"). Each Warrant entitles the holder to acquire one Common Share at an exercise price of $1.50 until April 28, 2013. Stonegate has granted to the underwriters an over-allotment option, exercisable for a period of 30 days from the date of closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes. If such option is exercised in full, additional gross proceeds of the Offering will be $6,750,000.SRC purchased 12,000,000 Units under the Offering. Following completion of the Offering, SRC owns 75,662,000 Common Shares (or approximately 57% of the issued and outstanding Common Shares on a non-fully-diluted basis) and 6,000,000 Warrants. In addition, SRC beneficially holds 500,000 stock options (the \"Stock Options\") exercisable to acquire Common Shares at a price of $1.00 per share until April 28, 2015. SRC holds its Common Shares, Warrants and Stock Options for investment purposes and does not at this time intend to acquire ownership of, or control over, additional securities of Stonegate.SRC has entered into a lock-up agreement with the underwriters which provides that SRC will not, without the prior consent of the underwriters or except in limited circumstances, sell, transfer, pledge, assign or otherwise dispose of the Stonegate securities it holds for a period of 120 days. SRC has also entered into a voting agreement with Stonegate whereby it has agreed to not vote its Common Shares in favour of non-management nominees to the board of directors of Stonegate for a period of three years, so long as one nominee is a representative of SRC.The underwriting syndicate for the Offering was led by GMP Securities L.P. and included BMO Capital Markets, Canaccord Financial Ltd., Wellington West Capital Markets Inc., CIBC World Markets Inc., Dahlman Rose & Company, LLC, Global...