Debentures convert to units with two-year warrants at C$0.15 per unit
By Devika Patel
Knoxville, Tenn., April 16 - Cobalt Coal Ltd. said it raised C$300,000 in the first tranche of a C$1 million non-brokered private placement of two-year 12% convertible redeemable debentures. The deal priced March 21.
The debentures are being sold at par and are convertible, by either the holder or the company, into units of one common share and one warrant at a conversion rate of C$0.15 per unit.
Each warrant is exercisable at C$0.20 for two years. The strike price is a 42.86% premium to the closing share price on March 20, C$0.14.
Proceeds will be used for acquisition expenses and general working capital purposes.
Cobalt is a coal exploration and production company based in Calgary, Alta.
Issuer: | Cobalt Coal Ltd.
|
Issue: | Convertible redeemable debentures, which convert to units of one common share and one warrant
|
Amount: | C$1 million
|
Maturity: | Two years
|
Coupon: | 12%
|
Conversion price: | C$0.15
|
Call option: | Yes
|
Price: | Par
|
Warrants: | One warrant per unit upon conversion
|
Warrant expiration: | Two years
|
Warrant strike price: | C$0.20
|
Agent: | Non-brokered
|
Pricing date: | March 21
|
Settlement date: | April 16 (for C$300,000)
|
Stock symbol: | TSX Venture: CCF
|
Stock price: | C$0.14 at close March 20
|
Market capitalization: | C$5.89 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.