* Says to sell 25 mln shrs at C$0.61 apiece
* Says proceeds to be used for expansion in Russia
* Sale at 12 pct discount to Monday's close
Nov 23 (Reuters) - Cathay Forest Products Corp said it would raise about C$15.3 million in bought deal financing to fund the Canadian forestry company's expansion activities in Russia.
The company said a syndicate of underwriters led by Dundee Securities Corp and Canaccord Capital Corp, agreed to buy 25 million shares at 61 Canadian cents apiece, which is a 12 percent discount to the stock's close price on Monday.
Underwriters will have an over-allotment option to buy up to 15 percent more of shares at the same price.
The proceeds from the offering would be used primarily to fund expansion of the company's Russian activities, including the harvesting of a second plantation and to develop downstream processing operations in a manner.
The offering is scheduled to close on or about Dec. 15, the company said in a statement.
Shares of the company closed at 69 Canadian cents Monday on the Toronto Venture Exchange.
(Reporting by Koustav Samanta in Bangalore; Editing by Gopakumar Warrier) Keywords: CATHAYFOREST/ (koustav.samanta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: koustav.samanta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says proceeds to be used for expansion in Russia
* Sale at 12 pct discount to Monday's close
Nov 23 (Reuters) - Cathay Forest Products Corp said it would raise about C$15.3 million in bought deal financing to fund the Canadian forestry company's expansion activities in Russia.
The company said a syndicate of underwriters led by Dundee Securities Corp and Canaccord Capital Corp, agreed to buy 25 million shares at 61 Canadian cents apiece, which is a 12 percent discount to the stock's close price on Monday.
Underwriters will have an over-allotment option to buy up to 15 percent more of shares at the same price.
The proceeds from the offering would be used primarily to fund expansion of the company's Russian activities, including the harvesting of a second plantation and to develop downstream processing operations in a manner.
The offering is scheduled to close on or about Dec. 15, the company said in a statement.
Shares of the company closed at 69 Canadian cents Monday on the Toronto Venture Exchange.
(Reporting by Koustav Samanta in Bangalore; Editing by Gopakumar Warrier) Keywords: CATHAYFOREST/ (koustav.samanta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: koustav.samanta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
