Five-year convertibles to be issued in tranches of A$1 million each
By Angela McDaniels
Tacoma, Wash., Nov. 3 - Enerji Ltd. will raise A$12 million to A$25 million through a convertible bond facility with investor Fortensa Special Opportunities Fund Ltd., according to a company news release.
Fortensa will purchase zero-coupon five-year convertibles in tranches of A$1 million at the company's request. All bonds must be converted before another tranche can be issued.
The bonds will be convertible into Enerji shares at a conversion price that will be determined based on the average trading price at the time of issue and at the time of conversion.
The convertibles will be callable at par.
The facility is subject to shareholder approval at a meeting to be held in early December.
The facility also requires that an Enerji shareholder loan shares with a value equal to 50% of the first tranche to Fortensa for 12 months. Gabrielsson Invest AB has agreed to do so.
Proceeds will be used to fund future installations of Opcon Powerbox units.
"We are seeking to create a sustainable profitable earnings stream from multiple installations of Opcon Powerboxes at customer sites. Our business model requires upfront capital to fund these installations, however, once in place, they become the key earnings driver for Enerji," managing director Greg Pennefather said in the release.
Enerji is based in Subiaco, Australia, and has the exclusive Australian sales and distribution rights to the Opcon Powerbox technology, which converts waste heat into electricity.
| Issuer: | Enerji Ltd.
|
| Issue: | Convertible bonds facility
|
| Amount: | A$12 million to A$25 million
|
| Maturity: | Five years
|
| Coupon: | 0%
|
| Price: | Par
|
| Call option: | At par
|
| Warrants: | No
|
| Investor: | Fortensa Special Opportunities Fund Ltd.
|
| Pricing date: | Nov. 3
|
| Stock symbol: | Australia: ERJ
|
| Stock price: | A$0.037 at close Nov. 3
|
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