By Susanna Moon
Chicago, Feb. 4 - Woulfe Mining Corp. said it plans to issue up to C$10 million principal amount of 10% five-year convertible unsecured subordinated debentures at par via Dundee Securities Ltd. as agent.
The notes are convertible into 3,448.2759 units of one share and one half-share warrant, for a conversion price of C$0.29 per unit.
Each warrant is exercisable at C$0.29 per share for 24 months.
The agent has an option for up to 15% of the offering for 48 hours.
The notes are redeemable after Dec. 31, 2015 if the weighted average closing price of the company's common shares during the 20 consecutive trading days ending five trading days before the redemption notice date is at least 130% of the conversion price. The company would deliver a number of shares equal to $1,000 principal amount divided by 95% of the weighted average closing price of the shares during the 20 consecutive trading days ending five trading days before the redemption date or maturity date, according to a company press release.
The conversion price and warrant strike price represent a 20.83% premium to the company's closing price on Feb. 1.
Proceeds will be used for the repayment of short-term debt and for general corporate purposes.
Dundee Corp. owns, directly or indirectly, about 11.86% of the outstanding common shares on an undiluted basis and 14.41% of the outstanding common shares on a partially diluted basis.
The Vancouver, B.C., company explores for minerals.
| Issuer: | Woulfe Mining Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million
|
| Maturity: | Dec. 31, 2017
|
| Warrants: | One half-share per unit
|
| Warrant strike price: | C$0.29 per share
|
| Warrant expiration: | 24 months
|
| Agent: | Dundee Securities Ltd.
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.29 per unit
|
| Conversion premium: | 20.83%
|
| Conversion ratio: | Into 3,448.2759 units
|
| Stock symbol: | TSX Venture: WOF
|
| Stock price: | C$0.24 at close Feb. 1
|
| Market capitalization: | C$87.24 million
|
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