Sherritt International has proposed a $115 million offering of shares and share purchase warrants tied to the price assessments of the physical, spot cobalt market published by Metal Bulletin.
Each unit in the offering comprises one common share and one half of a common share purchase warrant tied to an "applicable cobalt reference price," the Canada-based cobalt and nickel producer said this week. The warrants can be used to purchase between one and 1.25 common shares in Sherritt. The price of the common shares is derived monthly by Sherritt, based on a rolling average of the previous three months' cobalt price, calculated from the mid-point of Metal Bulletin's high-grade and low-grade cobalt price assessments. The structure of the...