Business
Sprott Resource Corp. announces pricing of Stonegate Agricom Ltd. initial public offering
Sprott Resource Corp. announces pricing of Stonegate Agricom Ltd. initial public offering
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Apr. 21, 2010 (Canada NewsWire Group) -- /CNW/ -- (TSX: SCP) - Sprott Resource Corp. (\"SRC\") is pleased to announce that Stonegate Agricom Ltd. (\"Stonegate\"), a subsidiary of SRC, has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec, and has entered into an underwriting agreement for its initial public offering of 45,000,000 units (the \"Units\") of Stonegate at a price of $1.00 per Unit (the \"Offering\"). Each Unit will consist 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 will entitle the holder to acquire one common share of Stonegate at an exercise price of $1.50 for a period of three years following the closing of the Offering. The Offering will generate gross proceeds of $45,000,000. 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, gross proceeds of the Offering will be $51,750,000. Closing of the Offering is scheduled for April 28, 2010, subject to customary closing conditions.SRC owns 63,662,000 Common Shares or approximately 73% of the issued and outstanding Common Shares (on a non-fully-diluted basis). SRC has indicated that it will purchase 12,000,000 Units under the Offering. Assuming the Offering closes and assuming SRC purchases 12,000,000 Units under the Offering, SRC will own 75,662,000 Common Shares on closing of the Offering or approximately 57% of the issued and outstanding Common Shares (on a non-fully-diluted basis).The underwriting syndicate for the Offering is led by GMP Securities L.P. and includes BMO Capital Markets, Canaccord Financial Ltd., Wellington West Capital Markets Inc., CIBC World Markets Inc., Dahlman Rose & Company, LLC, Global Maxfin Capital Inc. and Toll Cross Securities Inc.Stonegate has received conditional approval for the listing of the Common Shares and the Warrants, and the common shares of Stonegate issuable upon exercise of the Warrants, on the Toronto Stock Exchange (\"TSX\") under the symbols \"ST\" and \"ST.WT\", respectively. List...