Proceeds used for expansion of core mineral drilling services business
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., June 22 - Energold Drilling Corp. said it will raise C$10 million in a private placement of 10% convertible debentures.
The debentures are convertible into common shares at an initial conversion price of C$5.25 per share, a 22.95% premium to the June 21 closing share price of C$4.27. They mature in three years and may be called after one year.
"With [a recent acquisition] and with the additional organic growth that we are going to experience in the years to come, this is a very cash-intensive business and we needed to make sure we had that cash on hand," Sunny Pannu, investor relations, told Prospect News.
Settlement is expected July 1.
Proceeds will be used for acquisitions and capital commitments related to the expansion of the company's core mineral drilling services business and to fund operations.
The diamond drilling contractor is based in Vancouver, B.C.
| Issuer: | Energold Drilling Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$10 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | C$5.25
|
| Conversion premium: | 22.95%
|
| Call: | After one year
|
| Warrants: | No
|
| Pricing date: | June 22
|
| Settlement date: | July 1
|
| Stock symbol: | TSX Venture: EGD
|
| Stock price: | C$4.27 at close June 21
|
| Market capitalization: | C$175.28 million
|
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