By Laura Lutz
Des Moines, April 4 - FirstGrowth Capital Inc. raised C$3,202,721 from the second tranche of its planned private placement of units and convertible debentures, bringing the total raised so far to C$6,442,496.
In this tranche, the company sold 3,050,210 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.
The first tranche, which settled on March 15, included 3,085,500 units on the same terms.
The debenture portion of the placement is expected to consist of 2.7 million units of one transferable 10% convertible debenture and one half-share warrant at C$1.00 per unit. Each warrant from a debenture unit will be exercisable at C$1.05 for two years.
The four-year debentures will 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 issued upon conversion 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.
The placement priced on Feb. 8 as a C$6.2 million offering of C$2 million of debentures and up to C$4.2 million of units. On Feb. 15, it was increased to a C$7.95 million offering of C$2.7 million of convertible debentures and up to C$5.25 million of units.
Canaccord Capital Corp. and Ascenta Finance Corp. are each agents for part of the placement. The remainder will be non-brokered.
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
|
| Total Amount: | C$9,142,496
|
| Agent: | Ascenta Finance Corp. for up to 3 million units; non-brokered for remainder
|
| Pricing date: | Feb. 8
|
| Upsized: | Feb. 15
|
| Settlement date: | March 15 (for C$3,239,775); April 2 (for C$3,202,721)
|
| Stock symbol: | TSX Venture: FGC
|
| Stock price: | C$1.08 at close Feb. 8
|
| Stock price: | C$1.28 at close Feb. 15
|
| Stock price: | C$1.14 at close March 14
|
| Stock price: | C$1.20 at close April 2
|
|
|
| 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
|
| Units: | 6,135,710
|
| Price: | C$1.05
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.75
|
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