Debentures sold to two investors with 1.6 million 18-month warrants
By Devika Patel
Knoxville, Tenn., May 13 - Groupe Bikini Village Inc. said it completed a C$2 million private placement of 7% unsecured redeemable convertible debentures.
Each debenture matures in 18 months. The notes will be convertible into shares if the company defaults on the debentures at a price equal to the volume-weighted average price of the five trading days preceding conversion. They may be redeemed.
Investors also received 1.6 million warrants. Each warrant is exercisable at C$1.25 for 18 months. The strike price is a 30.21% premium to the May 12 closing share price of C$0.96.
Takota Asset Management and Elmag Investments Inc. each invested C$1 million and each received 800,000 warrants.
Proceeds will be used to reimburse $500,000 of demand notes that were issued on March 1 and as additional working capital.
Based in Boucherville, Quebec, the company sells beachwear products.
| Issuer: | Groupe Bikini Village Inc.
|
| Issue: | Unsecured redeemable convertible debentures
|
| Amount: | C$2 million
|
| Maturity: | 18 months
|
| Coupon: | 7%
|
| Conversion price: | Volume-weighted average price of the five trading days preceding conversion
|
| Call: | Yes
|
| Warrants: | 1.6 million warrants
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.25
|
| Investors: | Takota Asset Management (for C$1 million) and Elmag Investments Inc. (for C$1 million)
|
| Settlement date: | May 13
|
| Stock symbol: | Toronto: GBV
|
| Stock price: | C$0.96 at close May 12
|
| Market capitalization: | C$1.82 million
|
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