By Devika Patel
Knoxville, Tenn., Sept. 28 - DVD Investments Ltd. announced that it will include an offering of a convertible debenture in its previously announced private placement of units, bringing the total planned proceeds to a minimum of C$4 million.
In addition to offering a minimum of C$2 million worth of units at C$0.50 apiece and flow-through units at C$0.60 per flow-through unit, DVD also will offer a minimum of C$2 million of a 30-month 8% convertible subordinated secured debenture.
During the first two years of the note's life, it may be converted into units at C$0.50 per unit and during the last six months of its life, holders may opt to convert it into common shares at C$0.55 per share.
The debenture may be redeemed at DVD's option at any time and is redeemable at the option of the holder if DVD completes one or more private placements in any six month period for at least C$5 million.
DVD will pay an 8% work fee to First Canadian Capital Markets Ltd. for the debenture portion of the financing.
As previously reported, each flow-through unit will consist of one flow-through common share and one half-share warrant. The warrants are exercisable at C$0.83 for 18 months.
Non flow-through units of one share and one half-share warrant will be sold at C$0.50 per unit. Each whole warrant will be exercisable at C$0.83 for 18 months.
The placement is expected to settle at the same time as DVD's previously announced reverse takeover by Mooncor Energy Inc. The placement is conditional on closing of the acquisition, but the acquisition does not depend on settlement of the placement.
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
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| Amount: | C$4 million (minimum)
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| Announcement date: | July 18
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| Stock symbol: | TSX Venture: DVD.H
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| Stock price: | C$0.60 at close July 18
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|
|
| Units
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| Price: | C$0.50
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.83
|
|
|
| Flow-through units
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| Price: | C$0.60
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.83
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|
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| Debenture
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| Amount: | C$2 million
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| Maturity: | 30 months
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| Coupon: | 8%
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| Conversion price: | Into 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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