Canaccord is lead agent; offering finances general corporate purposes
By Devika Patel
Knoxville, Tenn., Sept. 27 - ePals Corp. said it has negotiated a C$12 million private placement of senior secured convertible debentures with a C$3 million greenshoe.
The convertible debentures initially mature on Oct. 31, 2014, which may be extended to Oct. 31, 2016. The securities accrue interest at 6.5% per year. The debenture may be converted into common shares at C$0.60 per share, a 39.54% premium to the Sept. 26 closing share price of C$0.43.
After Oct. 31, 2014, the company may force conversion. It may redeem the debentures after Oct. 31, 2015.
The deal will be conducted on a bought-deal basis by a syndicate of underwriters led by Canaccord Genuity Corp. and including Cormark Securities Inc.
Settlement is expected Oct. 16.
Proceeds will be used for general corporate purposes and working capital.
The education media company is based in Washington, D.C.
| Issuer: | ePals Corp.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | C$12 million
|
| Greenshoe: | C$3 million
|
| Maturity: | Oct. 31, 2014 (initial, extendable to Oct. 31, 2016)
|
| Coupon: | 6.5%
|
| Conversion price: | C$0.60
|
| Conversion premium: | 39.54%
|
| Call option: | After Oct. 31, 2014
|
| Warrants: | No
|
| Agent: | Canaccord Genuity Corp. (lead), Cormark Securities Inc.
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 16
|
| Stock symbol: | TSX Venture: SLN
|
| Stock price: | C$0.43 at close Sept. 26
|
| Market capitalization: | C$36.87 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
