Offering garners commitments from Difference Capital, Zolt-Gilburne
By Devika Patel
Knoxville, Tenn., March 13 - ePals Corp. said it has negotiated a $10 million non-brokered private placement of senior secured convertible debentures.
The convertible debentures initially mature on Oct. 31, 2014, which may be extended to Oct. 31, 2016. The securities accrue interest at 10% per year. The debenture may be converted into common shares at $0.40 per share, a 233.33% premium to the March 12 closing share price of $0.12.
After Oct. 31, 2014, the company may force conversion. It may redeem the debentures after Oct. 31, 2015.
Difference Capital Funding Inc. and Zolt-Gilburne 2012 Family Trust have committed to invest up to $7.5 million.
Settlement of the first tranche is expected March 20.
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: | $10 million
|
| Maturity: | Oct. 31, 2014 (initial, extendable to Oct. 31, 2016)
|
| Coupon: | 10%
|
| Conversion price: | $0.40
|
| Conversion premium: | 233.33%
|
| Call: | After Oct. 31, 2014
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investors: | Difference Capital Funding Inc. and Zolt-Gilburne 2012 Family Trust (for up to $7.5 million)
|
| Pricing date: | March 13
|
| Settlement date: | March 20
|
| Stock symbol: | OTCBB: EPCPF
|
| Stock price: | $0.12 at close March 12
|
| Market capitalization: | $20 million
|
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