Unsecured debentures due June 30, 2020, convert at C$0.40 per share
By Devika Patel
Knoxville, Tenn., Aug. 10 – Ceiba Energy Services Inc. said it settled a C$2.4 million non-brokered private placement of unsecured convertible debentures due June 30, 2020. The deal priced for C$5 million on June 6.
The company sold the 9% convertibles in C$1,000 increments.
The debentures convert into common stock at C$0.40 per share. The conversion price is a 135.29% premium to the C$0.17 closing share price on June 3 and is also equal to a conversion ratio of 2,500 common shares per C$1,000 of debentures.
The debentures may be redeemed after two years.
Proceeds will be used for development of the company’s Kaybob Class 1B waste fluid disposal facility and general corporate purposes. The company also plans to repay its C$7.3 million 12% convertible debentures due July 31, 2016 with cash on hand and borrowings from its credit facility.
Based in Calgary, Alta., Ceiba provides treatment, terminalling, storage, marketing and disposal services to crude oil and natural gas exploring clients.
| Issuer: | Ceiba Energy Services Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$2,402,000
|
| Maturity: | June 30, 2020
|
| Coupon: | 9%
|
| Price: | Par of C$1,000
|
| Conversion price: | C$0.40
|
| Conversion premium: | 135.29%
|
| Conversion ratio: | 2,500 common shares per C$1,000 of debentures
|
| Call: | After two years
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | June 6
|
| Settlement date: | Aug. 10
|
| Stock symbol: | TSX Venture: CEB
|
| Stock price: | C$0.17 at close June 3
|
| Market capitalization: | C$22.78 million
|
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