Transaction|July 11, 2019
Osisko announces reduction of Orion Resource Partners' ownership from 19.5% to 6.2% pursuant to a secondary offering and share repurchase
Torys acted as counsel to Orion as shareholder with a team that included Michael Pickersgill, Braden Jebson, Zee Derwa and Isabella Ssozi (Canadian securities) and Mile Kurta (U.S. securities).
On July 11, 2019, Osisko Gold Royalties Ltd ("Osisko") announced that Betelgeuse LLC ("Orion"), a jointly owned subsidiary of certain investment funds managed by Orion Resource Partners, closed the previously announced secondary offering of an aggregate of 7,850,000 common shares of Osisko held by Orion. The shares were purchased, on a bought deal basis, by a syndicate of underwriters led by CIBC Capital Markets and BMO Capital Markets.
Under the terms of the secondary offering, Orion had granted the underwriters the over-allotment option to purchase up to 1,177,500 option shares at a price of $14.10 per option share, which was exercised in full, for an additional gross proceeds of $16,602,750. Osisko did not receive any of the proceeds of the secondary offering or from the exercise of the over-allotment option.
In a concurrent transaction, Osisko agreed to purchase for cancellation 12,385,717 of its common shares from Orion at the secondary offering price. Payment from Osisko to Orion consisted of a combination of cash and the direct transfer of other equity securities currently held by Osisko. In a concurrent transaction, Osisko also agreed to sell to separate entities managed by Orion Resource Partners certain other equity securities held by Osisko for cash.
Upon closing of the share repurchase and the offering and the over-allotment option, Orion's ownership of Osisko's issued and outstanding common shares was reduced from 19.5% to 6.2%.
Osisko is an intermediate precious metal royalty company that holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes.
Orion Resource Partners is a global alternative investment management firm with approximately $6.0 billion under management.
Further information can be found on Globe Newswire's website.
Under the terms of the secondary offering, Orion had granted the underwriters the over-allotment option to purchase up to 1,177,500 option shares at a price of $14.10 per option share, which was exercised in full, for an additional gross proceeds of $16,602,750. Osisko did not receive any of the proceeds of the secondary offering or from the exercise of the over-allotment option.
In a concurrent transaction, Osisko agreed to purchase for cancellation 12,385,717 of its common shares from Orion at the secondary offering price. Payment from Osisko to Orion consisted of a combination of cash and the direct transfer of other equity securities currently held by Osisko. In a concurrent transaction, Osisko also agreed to sell to separate entities managed by Orion Resource Partners certain other equity securities held by Osisko for cash.
Upon closing of the share repurchase and the offering and the over-allotment option, Orion's ownership of Osisko's issued and outstanding common shares was reduced from 19.5% to 6.2%.
Osisko is an intermediate precious metal royalty company that holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes.
Orion Resource Partners is a global alternative investment management firm with approximately $6.0 billion under management.
Further information can be found on Globe Newswire's website.