Update on Proposed $14 million Brokered Private Placement Financing
09 Mai 2014 - 2:42AM
Access Wire
Calgary, AB / ACCESSWIRE / May 8, 2014
/ CanAm Coal Corp. (COE TSX-V) (CanAm" or the "Company") is
providing an update on its proposed financing. As previously
announced, CanAm has engaged Richardson GMP Limited to act as agent
with respect to a proposed "commercially reasonable efforts" $14
million private placement of units, each unit comprised of $1,000
principal amount of 12% non-convertible secured debentures and 670
common share purchase warrants.
The proposed financing is
progressing well and the Company is planning to close the private
placement on or before May 16, 2014. The main purpose of the
private placement is to repay its 10% and 9.5% debentures. The 10%
debenture matured today and the 9.5% debentures mature on May 9,
2014. Under the 10% and 9.5% debentures, the Company has 21
business day and 10 business day cure periods respectively to repay
the 10% and 9.5% debentures upon maturity and intends to make
repayment (including interest accruing to the date of repayment)
prior to expiry of these cure periods.
It is anticipated that insiders and close associates will
participate in the new debenture for approximately $4 to $4.5
million with insiders representing approximately $2.7
million.
Closing of the private placement is
subject to receipt of all necessary regulatory approvals including
approval of the TSX Venture Exchange.
This press release
does not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of
securities in any state in the United States in which such offer,
solicitation or sale would be unlawful. The securities referred to
herein have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration requirements.
For Further
Information:
CanAm
Corporate Office:
Jos De Smedt, President &
CEO
Tel: 403.262.3797
Toll Free: 1.877.262.5888
Email: jdesmedt@canamcoal.com
Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Advisory Respecting
Forward-Looking Statements:
This
news release contains certain "forward-looking information and
statements" within the meaning of applicable securities laws. The
use of any of the words "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "may", "will", "project",
"should", "believe", "plans", "intends", "confident", "might" and
similar expressions are intended to identify forward-looking
information or statements. In particular, this new release contains
forward looking statements pertaining to: the terms of the Offering
and the Units to be issued thereunder; the anticipated closing date
of the Offering; the amount of proceeds from the Offering; and the
use of the proceeds from the Offering. Various assumptions were
used in drawing the conclusions contained in the forward-looking
statements throughout this news release.
The forward-looking
information and statements included in this news release are not
guarantees of future performance and should not be unduly relied
upon. Forward-looking statements reflect management's current
beliefs and assumptions, based on information currently available
to management. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements, many of which are beyond the control of the Company.
Among the material factors that could cause actual results to
differ materially from those indicated by such forward-looking
statements are: that the information is of a preliminary nature and
may be subject to further adjustment; failure of the proposed
Offering to proceed on the terms agreed to; failure to obtain the
required approvals for the Offering; the failure to sell all Units
offered pursuant to the Offering; failure to convert the required
amount of debentures pursuant to the terms of the U.S. debt
facility; as well as those factors discussed in or referred to
under the heading "Risk and Uncertainties" in the Company's
Management's Discussion & Analysis dated November 26, 2013
available at www.sedar.com. Such information and statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those
anticipated in such forward-looking information or
statements.
The
Company cautions that the foregoing list of assumptions, risks and
uncertainties is not exhaustive. The forward-looking information
and statements contained in this news release speak only as of the
date of this news release, and the Company assumes no obligation to
publicly update or revise them to reflect new events or
circumstances, except as may be required pursuant to applicable
securities laws.
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