Deal sells units of one share, a half-share warrant, five-year notes
By Devika Patel
Knoxville, Tenn., March 12 – Grande West Transportation Group Inc. announced it completed a C$2.68 million private placement of 8% unsecured convertible notes and units. Euro Pacific Canada, Inc. was the lead agent for the sale, which was conducted on a commercially reasonable-efforts basis, priced for C$3 million on Jan. 26 and amended on Feb. 13.
The company sold 6,315,000 units of one common share and one half-share warrant at C$0.25 per unit and C$1.1 million of convertibles in denominations of C$1,000 each.
Each whole warrant is exercisable at C$0.40 until March 12, 2018. The strike price represents a 37.93% premium to C$0.29, the Jan. 23 closing share price. The conversion price of the notes is C$0.33, a 13.79% premium to the Jan. 23 closing price. The notes are due on March 12, 2020.
Proceeds will be used for company operations until Grande West achieves a positive cash flow and for other working capital needs.
The bus manufacturing company is based in Vancouver, B.C.
| Issuer: | Grande West Transportation Group Inc.
|
| Issue: | Units of one common share and one half-share warrant, unsecured convertible notes
|
| Amount: | C$2,678,750
|
| Agent: | Euro Pacific Canada, Inc. (lead)
|
| Pricing date: | Jan. 26
|
| Revised: | Feb. 13
|
| Settlement date: | March 12
|
| Stock symbol: | TSX Venture: BUS
|
| Stock price: | C$0.29 at close Jan. 23
|
| Market capitalization: | C$10.59 million
|
|
|
| Units
|
| Amount: | C$1,578,750
|
| Units: | 6,315,000
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | March 12, 2018
|
| Warrant strike price: | C$0.40
|
|
|
| Convertibles
|
| Amount: | C$1.1 million
|
| Maturity: | March 12, 2020
|
| Coupon: | 8%
|
| Price: | Par of C$1,000
|
| Conversion premium: | 13.79%
|
| Conversion price: | C$0.33
|
| Warrants: | No
|
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