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LONDON, ON, May 26 /CNW/ - Pacific & Western Credit Corp. (TSX:PWC) (the "Corporation" or "PWC") is pleased to announce that, further to its April 28, 2011, May 4, 2011 and May 20, 2011 announcements, it has completed its offering of units of PWC ("Units") by way of short form prospectus (the "Offering"). An underwriting syndicate was led by Canaccord Genuity Corp., as lead underwriter and sole bookrunner, and also included Scotia Capital Inc., Industrial Alliance Securities Inc. and PI Financial Corp. (collectively, the "Underwriters").
The Offering consisted of the issuance of 7,476,000 Units at a price of $2.25 per Unit, each Unit consisting of one common share in the capital of the Corporation (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"), for aggregate gross proceeds of $16,821,000. Each Warrant entitles the holder thereof to acquire, for a period of 18 months following May 26, 2011 (the "Closing Date"), one Common Share at a price of $2.80.
Pursuant to the Offering, the Underwriters were paid a cash commission, and were issued an aggregate of 747,600 Unit purchase warrants ("Broker Warrants"), each Broker Warrant entitling the holder thereof to acquire, for a period of 18 months from the Closing Date, one Unit at a price of $2.25 per Unit. In addition, the Corporation granted to the Underwriters an option (the "Over-Allotment Option"), exercisable in whole or in part at any time within 30 days after the Closing Date, to purchase up to an additional 1,121,400 Units (the "Additional Units") at a price of $2.25 per Additional Unit, including up to an additional 560,700 Warrants (the "Additional Warrants"). The Additional Warrants can be purchased pursuant to the Over-Allotment Option independent of the Additional Units at a price of $0.22 per Additional Warrant.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States absent such registration or an applicable exemption from such registration requirements.
Pacific & Western Bank of Canada, a Canadian Schedule I chartered bank and a wholly-owned subsidiary of the Corporation, is a branchless financial institution. It specializes in providing financing throughout Canada to well established corporations and government entities, including hospitals, school boards, universities and colleges, municipalities, provinces and territories, and federal government agencies.
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For further information: Visit our website at: http://www.pwbank.com.