12% debentures due Jan. 22, 2016 convert to stock at C$0.25 per share
By Devika Patel
Knoxville, Tenn., Nov. 9 – Feronia Inc. said it raised $10 million in the first tranche of a $17.5 million private placement of secured convertible debentures. The deal priced on Nov. 5.
The 12% debentures are due Jan. 22, 2016 and are convertible into common stock at C$0.25 per share.
The conversion price is a 127.27% premium to the Nov. 4 closing share price of C$0.11.
Settlement is expected in tranches, with the first tranche expected to settle on Friday.
Proceeds will be used as expansion capital for the company’s subsidiaries in the Democratic Republic of the Congo and for working capital purposes.
Feronia is a Toronto-based commercial farmland and plantation operator.
| Issuer: | Feronia Inc.
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| Issue: | Secured convertible debentures
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| Amount: | $17.5 million
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| Maturity: | Jan. 22, 2016
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| Coupon: | 12%
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| Conversion price: | C$0.25
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| Conversion premium: | 55.56%
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| Warrants: | No
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| Fees: | 2%
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| Pricing date: | Nov. 5
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| Settlement date: | Nov. 9 (for $10 million)
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| Stock symbol: | TSX Venture: FRN
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| Stock price: | C$0.11 at close Nov. 4
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| Market capitalization: | C$8.56 million
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