Debentures convert to units with two-year warrants at C$0.15 per unit
By Devika Patel
Knoxville, Tenn., June 8 - Cobalt Coal Ltd. said it raised C$100,000 in the final tranche of a C$400,000 non-brokered private placement of two-year 12% convertible redeemable debentures. The deal priced for C$1 million March 21 and raised C$300,000 on April 16.
The debentures were sold at par and are convertible, by either the holder or the company, into units of one common share and one warrant at a conversion rate of C$0.15 per unit.
Each warrant is exercisable at C$0.20 for two years. The strike price is a 42.86% premium to the closing share price on March 20, C$0.14.
Proceeds will be used for acquisition expenses and general working capital.
Cobalt is a coal exploration and production company based in Calgary, Alta.
| Issuer: | Cobalt Coal Ltd.
|
| Issue: | Convertible redeemable debentures that convert to units of one common share and one warrant
|
| Amount: | C$400,000
|
| Maturity: | Two years
|
| Coupon: | 12%
|
| Conversion price: | C$0.15
|
| Call option: | Yes
|
| Price: | Par
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.20
|
| Agent: | Non-brokered
|
| Pricing date: | March 21
|
| Settlement dates: | April 16 (for C$300,000), June 8 (for C$100,000)
|
| Stock symbol: | TSX Venture: CCF
|
| Stock price: | C$0.14 at close March 20
|
| Market capitalization: | C$7.98 million
|
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