Senior convertible unsecured debentures sold with two-year warrants
By Devika Patel
Knoxville, Tenn., June 26 - EmberClear Corp. said it raised C$3.69 million in the initial tranche of an C$8.5 million private placement of units, which priced May 8 and was amended on June 13. Of the proceeds, C$8 million is being raised through agent Wolverton Securities Ltd. on a commercially reasonable-efforts basis, and the remaining C$504,000 is being sold on a non-brokered basis.
The company is selling 945 units at C$9,000.00 per unit. The units consist of one C$9,000.00 12% senior convertible unsecured debenture and 5,000 warrants. EmberClear sold 362 units through the agent and 47.6666 units on a non-brokered basis in the first tranche.
The debentures are due June 30, 2014 and convert into common shares at a conversion price of C$0.75 per share, amended from the original conversion price of C$0.90 per share. The conversion price represents a 7.14% premium to the closing share price of C$0.70 on May 7. The company may redeem the debentures at 103.
The two-year warrants are now exercisable at C$0.75, also a 7.14% premium to the May 7 closing price. The strike price was originally C$0.90.
Proceeds will be used for general corporate purposes.
EmberClear is a Calgary, Alta.-based clean energy technology company.
| Issuer: | EmberClear Corp.
|
| Issue: | Units of C$9,000.00 in senior convertible unsecured debentures and 5,000 warrants
|
| Amount: | C$8,505,000
|
| Units: | 945
|
| Price: | C$9,000.00
|
| Maturity: | June 30, 2014
|
| Coupon: | 12%
|
| Conversion price: | C$0.75
|
| Conversion premium: | 7.14%
|
| Call: | At 103
|
| Warrants: | 5,000 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.75
|
| Agent: | Wolverton Securities Ltd. (for C$8,001,000), non-brokered (for C$504,000)
|
| Pricing date: | May 8
|
| Revised: | June 13
|
| Settlement date: | June 26 (for C$3,687,000)
|
| Stock symbol: | TSX Venture: EMB
|
| Stock price: | C$0.70 at close May 7
|
| Market capitalization: | C$29.73 million
|
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