Company sells C$2 million of units, C$660,000 of convertible debenture
By Devika Patel
Knoxville, Tenn., Feb. 15 - Empire Industries Ltd. said it settled a non-brokered private placement of units and convertible debentures. The deal priced for C$4.5 million on Dec. 17 and the company raised C$700,000 on Feb. 1. The placement raised a total of C$2.66 million.
The company sold 40 million units at C$0.05 apiece for C$2 million. It sold 14 million units in the Feb. 1 tranche. 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.
The C$660,000 10% debenture matures in five years. It converts to common stock at an initial conversion price of C$0.10. The conversion price is a 53.85% premium 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 debenture
|
| Amount: | C$2.66 million
|
| Agent: | Non-brokered
|
| Pricing date: | Dec. 17
|
| Settlement dates: | Feb. 1 (for C$700,000), Feb. 15
|
| 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)
|
|
|
| Debenture
|
| Amount: | C$660,000
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.10
|
| Conversion premium: | 53.85%
|
| Warrants: | No
|
| Investor: | Guangdong Qiguang Steel Structures Co. Ltd. (for C$1 million)
|
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