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Stonegate Agricom Completes $45 Million Initial Public Offering

Published: 04/28/2010

By Jay F. King, Christopher B. Norton, Paul M. Stein, Jennifer Traub

On April 28, 2010, Stonegate Agricom Ltd. closed its initial public offering of 45,000,000 units of the Company at a price of $1.00 per unit for gross proceeds of $45,000,000. Each unit consists of one common share of the Company and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share of the Company at an exercise price of $1.50 until April 28, 2013. On May 4, 2010, Stonegate completed the sale of an additional 6,750,000 units which represents the full exercise of the over-allotment option granted to the underwriters for an additional gross proceeds of $6,750,000.

The Company intends to use the proceeds of the offering to develop its phosphate projects in Peru and Idaho, USA.

The underwriting syndicate for the offering was led by GMP Securities L.P. and included BMO Capital Markets, Canaccord Financial Ltd., Wellington West Capital Markets Inc., CIBC World Markets Inc., Dahlman Rose & Company, LLC, Global Maxfin Capital Inc. and Toll Cross Securities Inc.

The common shares and the warrants of the Company are listed on the Toronto Stock Exchange under the symbols "ST" and "ST.WT," respectively.

Cassels Brock represented Stonegate Agricom Ltd. with a team that included Paul Stein (Securities and Mining), Jennifer Traub (Securities and Mining), Jay King (Securities and Mining), Christine Gallo (Securities), Chris Norton (Tax) and Duane Milot (Tax).