Deal conducted via Macquarie Private Wealth and Renaissance
By Devika Patel
Knoxville, Tenn., Aug. 8 - Feronia Inc. said it raised C$2.96 million in the second tranche of a C$10 million private placement of units and stock. The deal, which priced on July 16 and raised C$4.79 million on July 24, is being conducted by agents Macquarie Private Wealth Inc. and Renaissance Securities (Cyprus) Ltd. on a commercially reasonable efforts basis. There is a 15% greenshoe.
The company is selling 10,000 debenture units at C$1,000 per unit. The units consist of one C$1,000 12% convertible unsecured subordinated debenture and 1,667 warrants. The debentures are due in five years and convert to common stock at C$0.175 per share, which is a 59.09% premium to the July 13 closing price of C$0.11. The conversion ratio is equal to 5,714 shares per C$1,000 of debentures.
The warrants are exercisable at C$0.30 for two years. The strike price is a 172.73% premium to the July 13 closing price.
The company is also selling common stock at C$0.10 per share, which is a 9.09% discount to the July 13 closing price.
In the first tranche, the company sold 3,679 debenture units and 11,110,400 common shares. It sold 1,684 debenture units and 12,757,753 common shares in the second tranche.
Proceeds will be used for working capital purposes.
Feronia is a Toronto-based commercial farmland and plantation operator.
| Issuer: | Feronia Inc.
|
| Issue: | Units of C$1,000.00 in convertible unsecured subordinated debentures and 1,667 warrants, common stock
|
| Amount: | C$10 million
|
| Greenshoe: | 15%
|
| Agents: | Macquarie Private Wealth Inc. and Renaissance Securities (Cyprus) Ltd.
|
| Pricing date: | July 16
|
| Settlement date: | July 24 (for C$4,790,040), Aug. 8 (for C$2,959,775)
|
| Stock symbol: | TSX Venture: FRN
|
| Stock price: | C$0.11 at close July 13
|
| Market capitalization: | C$13.08 million
|
|
|
| Debenture units
|
| Units: | 10,000
|
| Price: | C$1,000
|
| Maturity: | Five years
|
| Coupon: | 12%
|
| Price: | C$1,000
|
| Conversion price: | C$0.175
|
| Conversion ratio: | 5,714 shares per C$1,000 of convertibles
|
| Warrants: | 1,667 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
|
|
| Stock
|
| Price: | C$0.10
|
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