Tuesday, 1 April 2008

Syndicate Of Investment Firms Hit The Streets For Planet Organic

Planet Organic Health Corp. (TSX:V-POH)
Basic shares: 33.1 million
Fully diluted: 38.2 million
Brokerage firms on both sides of the border have formed a syndicate to take part in a $15-million, fully-marketed financing for Planet Organic Health Corp. (POH)
The funds will be used to finance the $6.7 million cash portion of a recently announced acquisition of the organic California-based retail chain, New Leaf, as well as to fund new store construction, refurbishing existing stores and for general corporate purposes.
Leading the syndicate is Canaccord Capital, followed by Thomas Weisel Partners Canada Inc., CIBC World Markets Inc., ThinkEquity Partners LLC of Minneapolis and PI Financial.
The syndicate can also sell another 15% if demand is high. The financing is set to close April 28th. The per share price hasn't been set as yet.
Of note is the fact that this is the first time that Planet Organic has gone to the market for equity capital through a group of investment firms. Over the past several months, The Howard Group has been actively involved in the process, which lead up to today's announcement. It has been an interesting exercise to witness a variety of firms jockeying for position, which speaks to their thoughts about the quality of POH and its future.
To view the entire news release, please click here.