Yamana Gold Inc. (USA) (NYSE:AUY)’s subsidiary Brio Gold Inc, has completed its filings, with the securities and regulatory authorities, in all provinces of Canada, for the secondary offering of its common shares, held by Yamana. The company has stated that the shares would be transferred through exercising of purchase rights, which AUY would offer to its shareholders as dividend in-kind. Shareholders of record, as of November 23, 2016, would be awarded the shares at 5:00 pm, Toronto Time, on November 25.
The company stated that the final prospectus has qualified for the distribution of over 60 million shares of Brio, at a per share exercise price of C$3.25. As such, Yamana would obtain gross proceeds of approximately C$192.5 million. However, the filings also indicate that a total of 1.23 million shares of Brio would also sold on a firm commitment basis, at a price of C$3.25, a total of four underwriters. The list for underwriters includes CIBC World Markets Inc, Canaccord Genuity Corp, National Bank Financial Inc and Cormark Securities.
Following the secondary offering, Brio Gold is set to become a standalone company, effective of the closing date. However, Yamana would still hold a 46.3% stake in the new public company, on a non-diluted basis. The closing of all purchase rights is expected to occur by December 23, 2016. Yamana stated that the proceeds would help improve its cash position and reduce its net debt.
In its most recent financial report, for the 3Q2016, AUY announced that it generated $464.3 million as revenue, $39.9 million higher than the year before. Unfortunately, its net loss increased by $104.9 million, to reach $2.1 million, on a year-over-year basis. In its financial filing, Yamana reaffirmed that it was working to reduced its net debt by $300 million, by the end of the FY2017. As of the end of 3Q2016, the company had a short-term debt of $94.4 million and a cash position of $244 million.
Yamana Gold Inc. (USA) (NYSE:AUY) lost 5.16% of its share value and closed at a share price of $2.94, at the end of the November 23 trading session.