By Devika Patel
Knoxville, Tenn., July 3 - 49 North Resource Fund Inc. said it has engaged Union Securities Ltd. and Wellington West Capital Inc. as agents to sell between C$2 million and C$5 million of its 9% convertible unsecured subordinated debentures.
The debentures will mature in three years. They are convertible into common stock at any time with a conversion price of C$11.00 per share in the first year, C$11.75 per share in the second year or C$12.50 per share in the third and final year.
The debentures are redeemable with a premium equal to 6% of the outstanding principal if redeemed in the first year, 4% of the outstanding principal if redeemed in the second year or 2% of the outstanding principal if redeemed in the third and final year.
Settlement is expected July 17.
Proceeds will be used to redeem the company's C$2 million outstanding second preferred, series 1 shares and to repay C$1,877,500 in debt. The balance of the proceeds, which is estimated to be C$922,500, will be used for general working capital.
Based in Saskatoon, Sask., 49 North is an investment fund focused on the mining and oil and gas sectors.
| Issuer: | 49 North Resource Fund Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$2 million (minimum), C$5 million (maximum)
|
| Maturity: | Three years
|
| Conversion price: | C$0.015
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Warrants: | No
|
| Agents: | Union Securities Ltd., Wellington West Capital Inc.
|
| Pricing date: | July 2
|
| Settlement date: | July 17
|
| Stock symbol: | TSX Venture: FNR
|
| Stock price: | C$12.01 at close July 2
|
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