Rights Offering Details
What is a Rights Offering?
In a Rights Offering, all eligible shareholders get the same pro rata right to participate in the financing on the same terms.
How many common shares will I be able to subscribe for?
For each common share you hold on the Record Date you will receive one Right. For every two Rights, you will be able to subscribe for one new common share (subject to applicable law).
5:00 p.m. (Eastern time) on June 4, 2013 (the "Record Date").
June 6, 2013
What will it cost to subscribe for a share?
Upon the exercise of 2 Rights, each common share will cost US$0.66.
Rights Expiry Date
The Rights Offering will be open until 5:00 p.m. (Eastern time) on July 3, 2013. Holders of Rights will need to exercise their Rights prior to that time and date ("Expiry Date").
How much will the Rights Offerings raise?
Gross proceeds of approximately US$60.5 million.
What will the funds raised be used for?
Upon closing of the Rights Offering, PolyMet expects to have approximately US$15 million cash on hand, which, together with the net proceeds of this Rights Offering will be used to:
-- Repay the bridge loan advanced by Glencore on April 11, 2013 - US$20 million-- Complete environmental review and permitting - US$17 million-- Maintain existing infrastructure - US$5 million-- Engineering prior to start of project construction - US$10 million-- Long lead time equipment - US$10 million-- General corporate purposes - US$12 million.
How many common shares will be issued?
If all of the Rights are exercised, the Company expects to issue a total of approximately 91.6 million common shares representing 50% of the currently outstanding common shares.
Will this dilute my percentage share holdings?
Your shareholdings will not be diluted if you exercise your Rights in full. If your Rights go unexercised, your percentage share holdings will be diluted.
Can I sell my Rights?
Yes, shareholders who do not wish to exercise their Rights in full will be able to either assign or sell some or all of their Rights. The TSX has provided conditional approval for trading of the Rights, which will commence on May 31, 2013 as TSX:POM.RT subject to PolyMet's satisfaction of the listing conditions of the TSX. PolyMet will apply to list the Rights and Common Shares issuable upon the exercise of the Rights on the NYSE MKT. The approval of such listing will be subject to PolyMet fulfilling all of the listing requirements of the NYSE MKT.
Can I subscribe for more common shares?
Yes. All shareholders have an Additional Subscription Privilege that allows those shareholders who fully exercise their Rights to acquire any PolyMet common shares issuable under this Rights Offering that are not subscribed for prior to the Expiry Date. The allocation of the Additional Subscription Privilege will be pro rata to the total number of Additional Subscriptions and the number of common shares originally held by those who apply for Additional Subscription.
How do I pay for my common shares?
If you are a registered shareholder you will pay the subscription agent, being Computershare Investor Services Inc., in Toronto, Canada, directly. If you hold your shares through an intermediary in "street name" your intermediary should pay for the common shares in accordance with your instructions.