Investor Guangdong buys C$450,000 units, C$1 million debentures
By Devika Patel
Knoxville, Tenn., Dec. 17 - Empire Industries Ltd. said it plans a non-brokered private placement. The deal will raise C$4.5 million by selling units and convertible debentures.
The company will sell 40 million units at C$0.05 apiece for C$2 million. Each unit consists of one common share and one half-share warrant.
Each whole warrant is exercisable at C$0.10 for two years. The strike price reflects a 53.85% premium to C$0.065, the Dec. 16 closing share price.
Investor Guangdong Qiguang Steel Structures Co. Ltd. will buy up to 9 million of the units for C$450,000. It also will buy C$1 million of the C$2.5 million of convertible debentures.
The 10% debentures mature in five years. They convert to common stock at an initial conversion price of C$0.06, which increases by a penny each year until maturity.
The initial conversion price is a 7.69% discount to the Dec. 16 closing share price.
Proceeds will be used for working capital.
The steel fabrication and installation-services provider is based in Winnipeg, Man.
| Issuer: | Empire Industries Ltd.
|
| Issue: | Units of one common share and one half-share warrant, convertible debentures
|
| Amount: | C$4.5 million
|
| Agent: | Non-brokered
|
| Pricing date: | Dec. 17
|
| Stock symbol: | TSX Venture: EIL
|
| Stock price: | C$0.065 at close Dec. 16
|
| Market capitalization: | C$6.39 million
|
|
|
| Units
|
| Amount: | C$2 million
|
| Units: | 40 million
|
| Price: | C$0.05
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Investor: | Guangdong Qiguang Steel Structures Co. Ltd. (for C$450,000)
|
|
|
| Debentures
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| Amount: | C$2.5 million
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.06 in the first year, increasing by C$0.01 per year until maturity
|
| Warrants: | No
|
| Investor: | Guangdong Qiguang Steel Structures Co. Ltd. (for C$1 million)
|
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