Further to news in Stockwatch on Dec. 1, 2003, on Dec. 17, 2003, shareholder approval was obtained to the private placement of 6.9 million subscription receipts that were issued on Nov. 28, 2003.
Further to receipt of such shareholder approval and upon the release from escrow of a total of $4.14-million in subscription proceeds, Diamond Fields issued a total of 6.9 million units, each unit consisting of one common share in the capital of Diamond Fields (DFI) and one non-transferable share purchase warrant, each warrant entitling the holder to purchase one additional share, exercisable until Nov. 28, 2006, at a price of $1.00. As previously disclosed, should the weighted average closing price of DFI’s shares equal or exceed $1.30 per share for a period of 20 consecutive days at any time between six months and 35 months after the closing and DFI gives the warrantholders notice thereof, the warrants must be exercised within 30 days or they will terminate. Insider participants included chief executive officer Gregg Sedun and chief financial officer Marcel de Groot, who purchased 400,000 and 50,000 subscription receipts, respectively.
In addition, Diamond Fields paid finders’ fees equal to a cash commission of 6 per cent of the gross proceeds of the subscriptions found by the finders and has issued compensation receipts to purchase up to a total of 485,430 shares at an exercise price of 74 cents per share until Nov. 28, 2005.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
