On June 28, 2019, PolyMet Mining Corp. (“PolyMet”) completed a rights offering for gross proceeds of US$265 million. PolyMet, a mine development company that owns the NorthMet project in northeastern Minnesota, is publicly traded on both the Toronto Stock Exchange and NYSE American.
PolyMet issued the full allotment of 682,813,868 common shares at a subscription price of US$0.3881 per share. Pursuant to a standby purchase agreement entered into with Glencore AG (“Glencore”), Glencore exercised its basic subscription right in full and purchased all unsubscribed common shares.
The proceeds of the rights offering have been used to repay the amount that PolyMet was indebted to Glencore under certain debentures and to pay the standby fee owed to Glencore and the expenses of the rights offering.
PolyMet was represented by partners Denise Nawata and Mitchell Gropper, Q.C. and associate Ryan McCracken.
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