10% five-year convertible senior secured debentures sold with warrants
By Devika Patel
Knoxville, Tenn., July 8 – EXO U Inc. said it will conduct a C$5 million private placement of units with a 15% greenshoe. The sale will be conducted by agent Mackie Research Capital Corp. on a best-efforts basis.
The company will sell 5,000 units at C$1,000.00 per unit. The units consist of one C$1,000.00 10% convertible senior secured debenture and 610 warrants.
The debentures are due in five years and convert into common stock at C$1.10 per share. The conversion price represents a 34.15% premium to the closing share price of C$0.82 on July 7. The company may redeem the debentures after two years at 103.
The three-year warrants are exercisable at C$0.82, which is identical to the July 7 closing price.
Settlement is expected July 29.
Proceeds will be used for general corporate and working capital purposes.
The enterprise software company is based in Montreal.
| Issuer: | EXO U Inc.
|
| Issue: | Units of a C$1,000.00 convertible senior secured debenture and 610 warrants
|
| Amount: | C$5 million
|
| Greenshoe: | 15%
|
| Units: | 5,000
|
| Price: | C$1,000.00
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Conversion price: | C$1.10
|
| Conversion premium: | 34.15%
|
| Call: | At 103
|
| Warrants: | 610 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.82
|
| Agent: | Mackie Research Capital Corp.
|
| Pricing date: | July 8
|
| Settlement date: | July 29
|
| Stock symbol: | TSX Venture: EXO
|
| Stock price: | C$0.82 at close July 7
|
| Market capitalization: | C$38.07 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.
