By Sheri Kasprzak
New York, Dec. 21 - Decision Dynamics Technology Ltd. said it has received a commitment from a Canadian specialty finance company for a $4 million secured loan with warrants.
Decision will draw down $2 million at closing with the option to draw the remainder in 2006 depending upon the satisfaction of certain objectives.
The interest rate is based upon U.S. Treasury bonds and for the first tranche of $2 million will be 14%.
The investor will receive warrants for 1.3 million shares, exercisable at C$0.55 each for five years.
The initial draw is payable over the next three years.
Proceeds will be used for expansion of the company's marketing program and the development of a North American sales team.
Calgary, Alta.-based Decision Dynamics develops data capture, reporting and business analysis programs, focused primarily on the energy sector.
| Issuer: | Decision Dynamics Technology Ltd.
|
| Issue: | Secured loan
|
| Amount: | $4 million ($2 million in first tranche with option to draw in 2006 assuming certain objectives are met)
|
| Coupon: | 14%, initially (based upon U.S. Treasury bonds)
|
| Tenor: | Three years
|
| Warrants: | For 1.3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.55
|
| Announcement date: | Dec. 21
|
| Stock price: | C$0.32 at close Dec. 20
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
