The Toronto Stock Exchange reports that Argonaut Gold Inc. has filed a preliminary short form prospectus dated Oct. 19, 2020, for a proposed offering of 4.625 per cent convertible senior unsecured debentures due on Nov. 30, 2025. According to the TSX, the company expects to file a final short form prospectus for the offering in the next few days. As soon as possible after the final prospectus is cleared by the relevant securities regulatory authorities, the TSX will post the debentures for trading on an if, as and when-issued basis under the symbol AR.DB.U, in U.S. dollars and under Cusip No. 04016A AA 9. The TSX will issue a bulletin to confirm the expected closing date for the offering and the timing for the start of such trading.
Subject to the closing of the offering: (i) all trades in AR.DB.U on and
before the third trading day preceding the closing date will be for special
settlement on the closing date and will appear on the settlement report
from CDS Clearing and Depository Services Inc.; and (ii) all
trades in AR.DB.U for each of the two trading days preceding the closing
date will be for special settlement two business days after the trade date
and will appear on the settlement report from CDS. If the offering does
not close, all of the if, as and when-issued trades will be cancelled. No
securities will be delivered and no money will be owed by purchasers to
The TSX reports that parties who are entitled to receive debentures under the offering may
sell such securities in the if, as and when-issued market without being
subject to restrictions on short sales. Parties who are not entitled to receive debentures under the offering must comply with the short sale
rule in all respects for any sales they make in the if, as and when-issued
In the if, as and when-issued market, the debentures will be quoted
and traded on an interest-flat basis and not on an accrued interest basis
as interest on the debentures will only accrue from the date that the
debentures are issued.
According to the TSX, the debentures, which are issuable in the minimum principal amount of
$1,000 each, will be quoted based on $100 principal amounts with all
trades being made in multiples of $1,000. The minimum trading unit of
debentures is $1,000 and a board lot of debentures is $1,000.
If and when the offering closes, there will be no further trading in
AR.DB.U on an if, as and when-issued basis and the debentures
issued at such closing will trade on a regular settlement basis.
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