PyroGenesis (PYR.TO) entered into an agreement with Research Capital Corporation to act as the sole underwriter and sole bookrunner, pursuant to which the underwriter agreed to buy, on a "bought deal" basis pursuant to the Listed Issuer Financing Exemption (LIFE), 8.8-million of its units for $3 million at $0.34 apiece, it said overnight Tuesday.
Each unit will consist of one common share and one common share purchase warrant and each warrant will entitle the holder to buy a share for $0.42 for a three-year period from the closing date of the offering, expected on or about June 3. The underwriter has an option to increase the size of the offering by up to 15% by giving written notice of the exercise of the underwriter's option, or a part thereof, to the company at any time up to 48 hours prior to the closing date.
Concurrent with the LIFE offering, the company intends to complete a non-brokered private placement offering of its units at $0.34 apiece for up to $2 million with the exception of the warrants to be issued to PyroGenesis Chief Executive P. Peter Pascali under the concurrent private placement, which will expire two years from the closing date of the offering.
The offering and the concurrent private placement are expected to provide combined proceeds of up to $5.5 million to the company, assuming the full exercise of the underwriter's option. Proceeds will be used for working capital and advancements of contracts and backlog.
Shares of the company closed down 4.9% to $0.39 on Tuesday on the Toronto Stock Exchange.