United Keno is proposing to issue transferrable rights to subscribe for 3.8 million common shares at $3.50 per share. Under the offering, common share holders of record on March 30 will be entitled to one right for each common share held.
Scheduled to expire April 20, the offering will allow each rights holder who exercises all of his initial subscription privileges to subscribe for additional shares which remain unexercised at the expiry date.
Falconbridge, which holds a 33.3% stake in the company has agreed to exercise its rights and to take up and pay for, at the subscription price, all of the shares not purchased under the offering.
The offering is not open to U.S. residents and Falconbridge will not acquire enough shares to give it a 50% stake in the company.
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