Under the terms of the offering, shareholders of Rockford will receive one right for every common share held Dec 1. Rights holders can subscribe for one common share on the basis four rights plus 6 cents .
Jones Gable & Co. Ltd. of Toronto has been appointed manager of the rights offering, scheduled to expire at 4 p.m. Dec 27.
According to Rockford, the rights offering will not be exercisable by shareholders living outside Ontario or British Columbia or by shareholders living in the U.S.
However, those shareholders are entitled to sell such rights should there be a market for their purchase or sale. Northfield Minerals and Jones Gable have agreed to purchase the common shares not subscribed for under the offering at 6 cents per share. Pending regulatory approval, Rockford plans to issue to Jones Gable non-transferrable options entitling it to purchase up to 193,377 common shares at 6 cents per share exercisable for up to two years from the grant of such options in consideration of Jones, Gable’s standby commitment.
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