Haywood buys piece of Planet (November 04, 2003)

A bought-deal financing with Haywood Securities has assured Planet Exploration (PXI-V) of $5 million in gross proceeds.

The private placement entails 3.6 million units priced at $1.40 apiece. A unit consists of a share and a warrant that expires two years after the deal’s closing and is exercisable at $2. The conversion can be forced beforehand if the company’s shares exceed $3 for 20 consecutive trading days.

Haywood is entitled to 6% of the gross proceeds and to a number of units equal to 5% of those sold. The units will be priced at $1.40 each and subject to the same conditions as the others.

All of the securities are subject to a four-month holding period.

Planet Exploration has earmarked the net proceeds for exploration in Ontario, Mongolia and Mexico. A portion will go toward general working capital requirements.