EGI rights offering anticipated to gross over $20 million

EGI Financial Holdings Inc. has announced it is conducting a rights offering that is expected to result in gross proceeds of approximately Cdn$20.1 million.
The company says the proceeds will be used for general corporate purposes, which could include financing internal organic growth and paying in whole or in part for acquisitions.
EGI will be issuing rights to shareholders at the close of business on July 4, 2008 to subscribe for and purchase an aggregate of approximately 1.9 million shares at a price of Cdn$10.75 per share.
Each shareholder will receive one right for each share held, with each five rights entitling the holder to acquire one common share upon payment of the Cdn$10.75 and satisfaction of other requirements set forth in the circular, the release notes.
Shareholders who exercise their rights in full are entitled to subscribe for additional shares.
The rights will be listed on the TSX and are fully transferable. Trading in the rights on the TSX will cease at noon on July 31, 2008.
The rights may be exercised commencing on July 10 and will expire at 4:00 p.m. on July 31.
EGI has entered into a stand-by commitment agreement with Covington Fund II Inc. for the purchase of common shares not otherwise subscribed for and purchased, according to the release.