8% debenture payments to be funded with revenues from seismic surveys
By Angela McDaniels
Tacoma, Wash., Sept. 17 - Divestco Inc. said it sold C$1.21 million of 8% secured subordinated debentures with a royalty interest in the first tranche of a private placement that priced June 11.
The company plans to sell C$3 million to C$5 million of the debentures. Company directors subscribed for C$1.1 million of the first tranche.
The debentures do not have a maturity date and are being sold at C$150,000 per unit. Principal payments will be equal to 50% of the net revenues generated by the company's seismic surveys after July 1.
After the principal and interest have been repaid, the royalty interest will become effective. The company will pay 25% of the net revenues generated by the seismic surveys as a royalty for an indefinite period.
Proceeds will be used for working capital purposes.
A subsequent closing will include conversion of the company's shareholder loans and a portion of its subordinated loan into C$2.8 million of debentures, currently held by two directors. Additional closings may be held at the company's option.
Based in Calgary, Alta., Divestco provides software and services to the oil and natural gas exploration industry.
| Issuer: | Divestco Inc.
|
| Issue: | Secured subordinated debentures
|
| Amount: | C$3 million (minimum), C$5 million (maximum)
|
| Coupon: | 8%, payable quarterly
|
| Price: | C$150,000 per unit
|
| Warrants: | No
|
| Pricing date: | June 11
|
| Settlement date: | Sept. 17 (for C$1.21 million)
|
| Stock symbol: | TSX Venture: DVT
|
| Stock price: | C$0.25 at close June 8
|
| Market capitalization: | C$13.99 million
|
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