Shares in Peregrine Diamonds (TSX: PGD) fell by more than 20% on news of a $15.1-million rights offering that could dilute the stock by 100%.
Under the rights offering, shareholders of record as of Sept. 9 will receive one right for each Peregrine share held. Two rights will allow the holder to buy one unit, consisting of one share and one warrant, at 21¢ per unit.
Each warrant will be exercisable into one share at a price of 21¢ for six months following the closing of the offering.
Peregrine expects to issue 71.9 million shares under the offering, which is about half its total existing share count. It will also issue the same number of warrants, and if they’re all exercised, another 71.9 million shares will be issued.
Read the complete article at NorthernMiner.com/news/peregrine