Dallas, Texas 01/27/2014 (Financialstrend) – North American Palladium Ltd (USA) (NYSEMKT:PAL), the $113 million market capped industrial materials and minerals manufacturer has seen a major part of the positive gains it had accumulated since it announced positive guidance from its operations in Mid January slide on the back of huge sell off of its stick by investors during 24th January trading. The stock saw its market valuation go down by a significant 6.96 percent during trading that day, thus bringing down the overall weakly gains at the browsers to 12.9 percent.
The dramatic fall in the stock valuation of North American Palladium Ltd (USA) (NYSEMKT:PAL) occurred post the announcement by the firm that it would be making a public offering of securities to raise a total of $50 million proceeds. The public offer has been planned in two slots, with the first slot expected to help the firm accumulate close to $30 million by issuing “convertible unsecured subordinated debentures” which would yield its investors an interest component of 7.5 percent. These securities hold a term of 5 years and will mature in 2019.
In the second slot, North American Palladium Ltd (USA) (NYSEMKT:PAL) is planning to raise proceed in the range of $20 million and $45 million. These debentures would attract a 7.5 percent interest on the “convertible unsecured subordinated debentures” in addition to “warrants expiring three years from the date of issue.” The second set of warrants on offer will provide the “right to purchase an aggregate number of common shares of the Company which are equal to 33% of the number of Common Shares into which the Debentures are convertible at an exercise price equal to 120% of the conversion price of the Tranche 2 Debentures.”
The stock of North American Palladium Ltd (USA) (NYSEMKT:PAL) has been range bound between $0.62 and $0.68 in the past one year.