Rockwell Raises $8 Million
February 03, 10
Rockwell Diamonds Inc. has completed the private placement of the recapitalization financings they announced in December 2009, having raised C$8.6 million (US$8.1 million), the company announced Tuesday.
Rockwell intended to raise approximately C$12.5 million (US11.8 million) in a combination of private financings and a shareholder rights offering. In January, the company completed a C$7.4 million (US$7 million) private financing and projected an overall increase of C$2.2 million (US$2 million), with a total target goal of raising C$14.7 million (US$ 14 million).
“As a consequence of the sequencing of the placements and the international aspects of the rights offering, the latter was delayed approximately 8 weeks from the original timetable,” Rockwell stated.
The diamond miner has now closed the private placement portion of the financing and has issued approximately 132.8 million shares at C$0.065 (US$0.0616) per share.
It currently has 370.8 million outstanding shares and the rights offering will offer approximately 92.7 million shares, an increase of 25 million shares or C$1.25 million (US$1.18 million), over the December estimate.
President and CEO John Bristow said he is encouraged by investors’ interest and support for Rockwell. He attributed the greater-than-expected interest to the strengthening of rough diamond prices, improving financial market conditions and “strong support and enthusiasm for our prospects and plans.”