By Laura Lutz
Des Moines, April 19 - FirstGrowth Capital Inc. settled the final tranche of its previously announced private placement of convertible debentures and equity units for total proceeds of C$9,142,496.
In the most recent portion of the deal, the company sold 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 company also sold 9,492,706 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 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 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.
The first tranche, which included 3,085,500 equity units, settled on March 15. The other 3,050,210 of the units settled on April 4.
Canaccord Capital Corp. and Ascenta Finance Corp. each acted as agent for part of the equity units portion of the placement. The remainder was 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
|
| 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); April 19 (for C$2.7 million)
|
| 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
|
| Stock price: | C$1.12 at close April 18
|
|
|
| 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
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
