By Devika Patel
Knoxville, Tenn., Jan. 16 - Quaterra Resources Inc. said it settled a $3.79 million non-brokered private placement of convertible promissory notes. The deal priced for $5 million on Oct. 28.
The notes were sold in $1,000.00 denominations and will have a term of two years. They bear interest at 10%, which will be payable at maturity or upon conversion or redemption.
The notes may be converted into units of one common share and one warrant at $0.60 per unit. If the company's common shares close at $0.75 or higher for a 10 consecutive trading day period, the notes will automatically convert into units at $0.60 per unit.
The warrants are exercisable at $0.75 for two years, but may expire sooner if the company's shares close higher than $1.00 per share for a period of 10 consecutive days. In that case, the warrants will expire on the 30th day after the company notifies holders.
The company may also redeem the notes at 115% of the principal amount, along with interest.
Proceeds will be used for exploration.
Based in Vancouver, B.C., Quaterra acquires and explores mineral properties in the Americas.
| Issuer: | Quaterra Resources Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $3,787,973
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par of $1,000.00
|
| Yield: | 10%
|
| Conversion price: | $0.60
|
| Warrants: | One per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $0.75
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 28
|
| Settlement date: | Jan. 16
|
| Stock symbol: | TSX Venture: QTA
|
| Stock price: | $0.75 at close Oct. 27
|
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