8% debenture payments to be funded with revenues from seismic surveys
By Devika Patel
Knoxville, Tenn., June 11 - Divestco Inc. said it will sell between C$3 million and C$5 million of 8% secured subordinated debentures with a royalty interest.
The debentures do not have a maturity date and will be sold at C$150,000 per unit. Principal payments will be equal to 50% of the net revenues generated by the company's seismic surveys after July 1.
After the principal and interest have been repaid, the royalty interest will become effective. The company will pay 25% of the net revenues generated by the seismic surveys as a royalty for an indefinite period.
Settlement of the first tranche is expected June 30.
Proceeds will be used to repay subordinated debt.
Based in Calgary, Alta., Divestco provides software and services to the oil and natural gas exploration industry.
| Issuer: | Divestco Inc.
|
| Issue: | Secured subordinated debentures
|
| Amount: | C$3 million (minimum), C$5 million (maximum)
|
| Coupon: | 8%
|
| Price: | C$150,000 per unit
|
| Warrants: | No
|
| Pricing date: | June 11
|
| Stock symbol: | TSX Venture: DVT
|
| Stock price: | C$0.25 at close June 8
|
| Market capitalization: | C$13.99 million
|
© 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.
