Homeland Energy Announces Filing of Rights Offering
TORONTO, CANADA -- (Marketwire) -- 06/02/10 -- Homeland Energy Group Ltd. (TSX: HEG) ('Homeland' or the 'Company') is pleased to announce the filing of the Short Form Rights Offering Prospectus (the 'Prospectus') for the Rights Offering (the 'Offering') previously announced February 11, 2010.
The Company has filed the Prospectus with applicable securities regulators in Alberta, British Columbia and Ontario (the 'Rights Offering') which will be made available to all holders of its common shares of record at the close of business on June 9, 2010 (the 'Record Date') residing in qualifying jurisdictions. Under the Offering, Homeland will issue each shareholder of the Company as at the Record Date one right ('Right') for each Common Share held, and each Right entitles the holder thereof to subscribe for 0.5792 of a Common Share upon payment of the Subscription Price of $0.05. The Rights will trade on the TSX under the symbol HEG.RT until 5:00pm Toronto time on June 30, 2010 (the 'Expiry Date'). Shareholders who fully exercise their Rights will be entitled to subscribe, pro rata, for additional Shares, if available, that were not subscribed for initially on or before the Expiry Date.
If all the Rights are exercised, the Company will receive gross proceeds of $8,750,000 from the subscription of Shares. The company's largest shareholder, GMR Energy Limited ('GMR') has agreed to provide a standby commitment equivalent to approximately CAD$8,000,000.
The Prospectus together with certificates evidencing the Rights will be mailed to eligible shareholders on or about June 9, 2010. Registered shareholders wishing to exercise their Rights must forward the completed Rights certificates, along with the applicable funds to Equity Transfer Inc. by the Expiry Date. Shareholders who own their Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.
For further information respecting the Offering, please refer to the Prospectus, a copy of which is filed on SEDAR at www.sedar.com.
Homeland Energy Group Ltd. (TSX: HEG) is a coal producer with operations in the Witbank area of South Africa. The company also has a large-scale development property in South Africa and exploration interests in Southern Africa. Homeland will continue to seek out interests in additional coal projects in South Africa and neighbouring countries as well as internationally. Homeland is a shareholder in Homeland Uranium Inc., a Canadian uranium exploration company focused on projects in Niger and the United States. Homeland Energy Group Ltd. is currently traded on the Toronto Stock Exchange under the symbol 'HEG' with 302,115,756 common shares issued and outstanding.
Please visit www.homelandenergygroup.com.
Contacts:
Homeland Energy Group Ltd.
Jeff Lowe
Acting Chief Financial Officer
1 416 506-1979
info@homelandenergygroup.com
www.homelandenergygroup.com