By Devika Patel
Knoxville, Tenn., July 13 - Family Memorials Inc. said it settled the first C$4.83 million tranche of a short-form prospectus offering of five-year convertible secured debentures. The deal priced to yield 10% on May 20 and was increased to C$4.87 million with a C$487,000 greenshoe from C$4.35 million on June 6.
The sale is being conducted by Macquarie Private Wealth Inc. on a commercially reasonable efforts basis.
The debentures, due June 15, 2016, will be initially convertible at C$0.19 per share and may be called after June 15, 2014 for a cash payment of principal, interest and a 5% premium. The conversion price is equal to a conversion rate of 5,263.1579 shares per C$1,000 of debentures and is a 5% discount to the May 19 closing share price of C$0.20.
Proceeds will be used for development of new sales software "imonuments," for working capital and, if the maximum amount is raised, for potential acquisitions.
The Thunder Bay, Ont., company sells granite monuments for placement on individual cemetery lots.
| Issuer: | Family Memorials Inc.
|
| Issue: | Convertible secured debentures
|
| Amount: | C$4.87 million
|
| Greenshoe: | C$487,000
|
| Maturity: | June 15, 2016
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Yield: | 10%
|
| Conversion price: | C$0.19
|
| Conversion ratio: | 5,263.1579 shares per C$1,000 of debentures
|
| Conversion discount: | 5%
|
| Call: | After June 15, 2014
|
| Warrants: | No
|
| Agents: | Macquarie Private Wealth Inc.
|
| Pricing date: | May 20
|
| Upsized: | June 6
|
| Settlement date: | July 13 (for C$4,833,000)
|
| Stock symbol: | TSX Venture: FAM
|
| Stock price: | C$0.20 at close May 20
|
| Market capitalization: | C$6.58 million
|
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