AYLMER – Amtelecom Income Fund, owner of telecom and cable company Amtelecom, announced this week it has entered into an agreement to sell 1,153,850 trust units at a price of $13 each for gross proceeds to the fund of approximately $15 million on a bought deal basis.
The company plans to use the money to repay debt.
The underwriting syndicate is led by Canaccord Capital Corporation and includes CIBC World Markets Inc. and Sprott Securities Inc. The underwriters have been granted an over-allotment option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 15% of Trust Units of the Fund on the same terms and conditions for market stabilization and over-allotment purposes, says the press release.
The offering is scheduled to close on or about August 31, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
