By Laura Lutz
Washington, Feb. 15 - FirstGrowth Capital Inc. increased the size of its previously announced private placement of units to C$7.95 million from C$6.2 million.
The placement is now expected to include C$2.7 million of 10% convertible debentures, up from C$2 million, and up to C$5.25 million of units, up from C$4.2 million.
The company plans to sell up to 5 million units of one share and one warrant at C$1.05 per unit. Each warrant will be exercisable at C$1.75 for two years.
Ascenta Finance Corp. will act as agent for the placement of up to 3 million of the units.
The debenture portion of the placement will consist of 2.7 million units of one transferable debenture and one half-share warrant at C$1.00 per unit.
The four-year debentures will be pay interest quarterly. They will be convertible into units of one share and one half-share warrant. The conversion price will be C$1.25 during the first year, C$1.40 during the second year, C$1.55 during the third year and C$1.75 during the fourth year.
Each warrant will be exercisable at C$1.75 until the earlier of two years from the issuance of the warrants and the last business day before the expiry date of the debentures.
FirstGrowth may redeem the debentures upon six months notice at any time after the second year.
Proceeds of the non-brokered placement will be used to purchase additional equipment and for working capital.
FirstGrowth is an oil, gas and mineral exploration company based in Vancouver, B.C.
| Issuer: | FirstGrowth Capital Inc.
|
| Issue: | Units of one warrant and one debenture convertible into one unit of one share and one half-share warrant; units of one share and one warrant
|
| Amount: | C$7.95 million
|
| Agent: | Acenta Finance Corp. for up to 3 million units; non-brokered for remainder
|
| Pricing date: | Feb. 8
|
| Upsized: | Feb. 15
|
| Stock symbol: | TSX Venture: FGC
|
| Stock price: | C$1.08 at close Feb. 8
|
| Stock price: | C$1.28 at close Feb. 15
|
|
|
| Convertible debenture units
|
| Amount: | C$2.7 million
|
| Maturity: | Four years
|
| Coupon: | 10%
|
| Price: | Par of $1.00
|
| Yield: | 10%
|
| Conversion price: | C$1.25 per unit in the first year; C$1.40 per unit in the second year; C$1.55 per unit in the third year; C$1.75 per unit in the fourth year
|
| Warrants: | One per unit; one half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years for warrants issued in convertible debenture units; earlier of two years or last business day before the expiry date of the warrants for warrants issued upon conversion
|
| Warrant strike price: | C$1.05 for warrants issued in convertible debenture units; C$1.75 for warrants issued upon conversion
|
|
|
| Units
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| Amount: | C$5.25 million
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| Units: | 5 million
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| Price: | C$1.05
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| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.75
|
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