Net proceeds from the sale of 5.75 million convertible preferred shares amounted to US$136.3 million, Echo Bay Mines (TSE) reports. The proceeds are earmarked for debt repayment and general corporate purposes.
The company increased the number of shares in the offering from an initial four million shares. The shares were priced to yield a 7% dividend. Each preferred share is convertible into 2.985 common shares.
As of June 30, Echo Bay had more than 105 million common shares outstanding. Conversion of all of the preferred shares would leave Echo Bay with more than 122 million shares outstanding.
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