Company sells two-year 6% notes to investor Cornwall in second closing
By Devika Patel
Knoxville, Tenn., Aug. 10 - Viridis Energy Inc. said it will raise C$3.92 million by selling a secured convertible note to Cornwall Investments LLC in the second tranche of a C$6.42 million non-brokered private placement.
The 6% notes, which are due in two years, are convertible into units of one common share and a half-share warrant at an initial conversion price of C$0.25 per unit, a 16.28% premium to the Aug. 9 closing share price of C$0.215.
The whole warrants will be exercisable at C$0.40 for two years. The strike price reflects an 86.05% premium to the Aug. 9 closing price.
The company sold 10 million of the units at C$0.25 per unit in the first tranche of the placement on July 5.
Proceeds will be used for general working capital.
Viridis is a Vancouver, B.C.-based distributor of alternative energy.
| Issuer: | Viridis Energy Inc.
|
| Issue: | Secured convertible note convertible into units of one common share and a half-share warrant; units of one common share and a half-share warrant
|
| Amount: | C$6,422,000
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Agent: | Non-brokered
|
| Settlement dates: | July 5 (for C$2.5 million), Aug. 10 (for C$3,922,000)
|
| Stock symbol: | TSX Venture: VRD
|
| Stock price: | C$0.215 at close Aug. 9
|
| Market capitalization: | C$6.51 million
|
|
|
| Notes
|
| Amount: | C$3,922,000
|
| Maturity: | Two years
|
| Coupon: | 6%
|
| Conversion price: | C$0.25
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Investor: | Cornwall Investments LLC
|
|
|
| Units
|
| Amount: | C$2.5 million
|
| Units: | 10 million
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
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