Units consist of three-year 10% convertible, C$200 of stock, warrants
By Devika Patel
Knoxville, Tenn., Sept. 12 - Capgain Properties Inc. said it raised C$421,000 in the first tranche of a C$1 million non-brokered private placement of units on Aug. 30. The deal priced on June 13.
The company is selling 1,000 units at C$1,000 apiece, with each unit consisting of an C$800 three-year 10% convertible unsecured debenture, C$200 of common stock and two warrants. It sold 421 units in the initial tranche.
Each debenture converts to common stock at C$0.13 per share.
The two-year warrants are each exercisable at C$0.15 and C$0.20. The debenture conversion price and warrant strike prices are 30%, 50% and 100% premiums to the June 12 closing share price of C$0.10.
CapGain paid a C$38,500 finder's fee to Canaccord Genuity Corp.
Proceeds will be used as earnest money to secure the company's right to purchase contracted properties and for general corporate purposes.
The real estate investment company is based in Lake in the Hills, Ill.
| Issuer: | Capgain Properties Inc.
|
| Issue: | Units of a C$800 three-year 10% convertible unsecured debenture, C$200 of common stock and two warrants
|
| Amount: | C$1 million
|
| Units: | 1,000
|
| Price: | C$1,000
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | C$0.13
|
| Warrants: | Two warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15, C$0.20
|
| Agent: | Non-brokered
|
| Pricing date: | June 13
|
| Settlement date: | Aug. 30 (for C$421,000)
|
| Stock symbol: | TSX Venture: CPP
|
| Stock price: | C$0.10 at close June 12
|
| Market capitalization: | C$5.77 million
|
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