Magma Energy files prospectus for US$39m share offering
Magma Energy Corp. files preliminary short-form prospectus in connection with a proposed marketed offering of approximately $40 million (US$39million) of common shares to finance acquisition of majority stake in Icelandic HS Orka.
“Magma Energy Corp. (TSX:MXY) announces that it has filed a preliminary short-form prospectus in connection with a proposed marketed offering (“Offering”) of approximately $40 million (US$39million) of common shares (“Shares”) at a price of $1.12 per share.”, per release as of July 12th.
In addition, Magma has also granted the underwriters an option, exercisable in whole or in part, up to 30 days following the closing of the Offering to increase the Offering by up to an additional 15% of the number of Shares sold pursuant to the Offering to cover over-allotments and for market stabilization purposes. The Offering will be managed by a syndicate of underwriters led by Raymond James Ltd.
The net proceeds from the Offering are intended to be used for Magma’s acquisition of 52.35% of the outstanding shares of HS Orka hf from Geysir Green Energy, as well as for working capital and general corporate purposes. Closing of the Offering is expected to occur on or about July 27, 2010.”
Source: Company announcement via e-mail