Published on 8/9/2011 in the Prospect News Convertibles Daily.
New Issue: Family Memorials wraps C$5.36 million 10% convertible debentures sale
By Devika Patel
Knoxville, Tenn., Aug. 9 - Family Memorials Inc. said it raised another C$524,000 in the final tranche of a C$5.36 million 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 company completed a C$4.83 million tranche on July 13. The greenshoe was fully exercised.
The sale was conducted by Macquarie Private Wealth Inc. on a commercially reasonable efforts basis.
The debentures, due June 15, 2016, are 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, 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.
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Issue: | Convertible secured debentures
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Amount: | C$5,357,000 (including C$487,000 greenshoe)
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Maturity: | June 15, 2016
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Coupon: | 10%
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Price: | Par of C$1,000
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Conversion price: | C$0.19
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Conversion ratio: | 5,263.1579 shares per C$1,000 of debentures
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Conversion discount: | 5%
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Call: | After June 15, 2014
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Warrants: | No
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Agents: | Macquarie Private Wealth Inc.
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Pricing date: | May 20
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Upsized: | June 6
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Settlement date: | July 13 (for C$4,833,000), Aug. 9 (for C$524,000)
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Stock symbol: | TSX Venture: FAM
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Stock price: | C$0.20 at close May 20
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Market capitalization: | C$6.58 million
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