News Article
5N Plus to issue $40 million worth of new shares
The agreement made by the provider of group III materials used in the MOCVD industry ,consists of a $20 million public bought‐deal offering and a $20 million concurrent private placement
5N Plus has entered into agreements regarding an equity financing of an aggregate of 12,903,613 units at a price of $3.10 per unit, for aggregate gross proceeds of $40 million.
The firm is a producer of purified metals such as gallium, germanium, indium, selenium and tellurium, which are used in the manufacture of compound semiconductor wafers. 5N Plus is also a provider of inorganic chemicals such as CdTe and CdS used in the solar industry.
5N Plus intends to use the net proceeds from the financing to reduce its indebtedness under its revolving credit facility and for general corporate purposes.
Each unit will be comprised of one common share and one‐half of a common share purchase warrant. Each full warrant will entitle its holder to acquire one additional common share of 5N Plus at a price of $5.00 for 24 months.
In connection with the financing, 5N Plus entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. The deal is pursuant to the underwriters purchasing, on a bought‐deal basis, 6,452,000 units of 5N Plus at a price of $3.10 per unit, for aggregate gross proceeds to 5N Plus of $20 million.
The units will be offered by way of short form prospectus in each of the provinces of Canada, as well as in the United States under applicable registration statement exemptions.
5N Plus granted an over‐allotment option to the underwriters of the offering, entitling them to purchase, for a period of 30 days from the closing of the offering, up to 967,800 million additional units at a price of $3.10 per unit, for additional gross proceeds to 5N Plus of $3 million, to cover overallotments and for market stabilization purposes, if any.
5N Plus also entered into an agreement with Investissement Québec pursuant to which Investissement Québec agreed to purchase, by way of concurrent private placement, 6,451,613 units of 5N Plus at a price of $3.10 per unit, for aggregate gross proceeds to 5N Plus of $20 million.
The common shares and warrants issued under the private placement will be subject to a statutory four‐month hold period.
In connection with the public bought‐deal offering, 5N Plus will file a preliminary short form prospectus in all provinces of Canada by May 23, 2012. The prospectus offering and concurrent private placement are subject to all standard regulatory approvals, including that of the Toronto Stock Exchange, and are expected to close on or about June 6, 2012.
The public bought‐deal offering and the concurrent private placement are subject to customary closing conditions.
