12% debentures due Jan. 22, 2016 convert to stock at C$0.25 per share
By Devika Patel
Knoxville, Tenn., Dec. 17 – Feronia Inc. said it will raise $3.2 million in the final tranche of a $15 million private placement of secured convertible debentures. The deal priced for $17.5 million on Nov. 5 and raised $10 million on Nov. 9 and $1.8 million on Nov. 27.
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.
If the company does not complete an amended debt financing prior to Dec. 31, the conversion price will be reduced to C$0.14 per share.
Golden Oil Holdings Ltd., the investor for the second and third tranche, has invested $5 million.
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.
|
| Issue: | Secured convertible debentures
|
| Amount: | $15 million
|
| Maturity: | Jan. 22, 2016
|
| Coupon: | 12%
|
| Conversion price: | C$0.25
|
| Conversion premium: | 127.27%
|
| Warrants: | No
|
| Fees: | 2%
|
| Investor: | Golden Oil Holdings Ltd. (for $5 million)
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 9 (for $10 million), Nov. 27 (for $1.8 million), Dec. 17 (for $3.2 million)
|
| Stock symbol: | TSX Venture: FRN
|
| Stock price: | C$0.11 at close Nov. 4
|
| Market capitalization: | C$8.28 million
|
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