Investors also receive one warrant for each C$1.00 of principal bought
By Devika Patel
Knoxville, Tenn., March 2 - Cdn Oilfield Technologies & Solutions Corp. said it raised C$2 million in the first tranche of a C$4 million private placement of secured subordinated debentures. The deal priced Feb. 16.
The debentures have a one-year term and accrue interest at 12% per year. They may be prepaid after six months.
For every C$1.00 of principal, the investors will receive a warrant, which is exercisable at C$0.15 for one year. The strike price reflects a 50% premium to the Feb. 15 closing share price of C$0.10.
Proceeds will be used for general working capital purposes.
The Calgary, Alta., company provides products and services to clients in the oil and gas industry.
| Issuer: | Cdn Oilfield Technologies & Solutions Corp.
|
| Issue: | Secured subordinated debentures
|
| Amount: | C$4 million
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Call option: | After six months
|
| Warrants: | One warrant for every C$1.00 of principal
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.15
|
| Pricing date: | Feb. 16
|
| Settlement date: | March 2 (for C$2 million)
|
| Stock symbol: | TSX Venture: OTS
|
| Stock price: | C$0.10 at close Feb. 15
|
| Market capitalization: | C$8.82 million
|
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