By Laura Lutz
Des Moines, Oct. 16 - DVD Investments Ltd. gave details of its previously announced C$4.06 million private placement of units and a debenture.
The placement consisted of 3,748,000 non flow-through units at C$0.50 each, 306,335 flow-through units at C$0.60 each and a 10% convertible subordinated secured debenture in principal amount of C$2 million.
The debenture will mature in 30 months. During the first two years, it will be convertible into units at C$0.50 per unit. During the last six months of its life, it will be convertible into common shares at C$0.55 per share.
The debenture may be redeemed at DVD's option at any time. It is redeemable at the option of the holder if DVD completes at least one private placement in any six-month period for at least C$5 million.
Each non flow-through unit consists of one non flow-through share and one half-share non flow-through warrant.
Each flow-through unit consists of one flow-through common share and one half-share warrant.
The whole warrants from either series of units are each exercisable at C$0.83 for 18 months.
The placement settled alongside DVD's previously announced reverse takeover by Mooncor Energy Inc.
The placement originally priced on May 15 as an offering of non flow-through units for up to C$7.5 million. The flow-through component was added on July 18, and the debenture was added on Sept. 27.
As of Sept. 27, the deal was expected to include at least C$2 million of units, and the principal amount of the debenture was expected to be at least C$2 million.
Proceeds will be used for drilling, land acquisitions and general operating expenses.
Mooncor is a Toronto-based oil and gas exploration and production company.
| Issuer: | DVD Investments Ltd.
|
| Issue: | Units of one share and one half-share warrant; flow-through units of one flow-through common share and one half-share warrant, convertible debenture
|
| Amount: | C$4,057,801
|
| Pricing date: | May 15
|
| Amended: | July 18, Sept. 27
|
| Settlement date: | Sept. 28
|
| Stock symbol: | TSX Venture: DVD.H
|
| Stock price: | C$0.60 at close Nov. 3, 2006 (last trade)
|
|
|
| Non flow-through units
|
| Units: | 3,748,000
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.83
|
|
|
| Flow-through units
|
| Units: | 306,335
|
| Price: | C$0.60
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.83
|
|
|
| Debenture
|
| Amount: | C$2 million
|
| Maturity: | 30 months
|
| Coupon: | 10%
|
| Conversion price: | Into non flow-through units at C$0.50 per unit (first two years); into common shares at C$0.55 per share (last six months)
|
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