By Sheri Kasprzak
New York, Dec. 23 - FirstGrowth Capital Inc. said it plans to raise up to C$3 million in a non-brokered private placement.
The company intends to sell 300 units at C$10,000 each.
Each unit includes 2,000 common shares and one debenture with a face value of C$8,000.
The debentures mature in two years, bear interest at 8% annually and are convertible into units at C$1.25 each for the first year and at C$1.50 each for the second year, assuming FirstGrowth's acquisition of Kinetex Inc. is completed.
Each debenture unit is comprised of one share and one half-share warrant. The whole warrants are exercisable at C$1.75 each for two years.
The expiry of the warrants may be accelerated to 30 days if the company's stock exceeds 20% of the exercise price for more than 30 consecutive trading days.
If the acquisition is not completed by Feb. 28 or is terminated, the debentures may not become convertible and may become subject to repayment in cash and stock.
Based in Vancouver, B.C., FirstGrowth is a capital pool company. Kinetex offers seismic data services to the oil and natural gas exploration sector.
| Issuer: | FirstGrowth Capital Inc.
|
| Issue: | Units of 2,000 common shares and C$8,000 in convertible debentures
|
| Amount: | C$3 million
|
| Units: | 300
|
| Price: | C$10,000
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$1.25 for the first year; C$1.50 for the second year
|
| Warrants: | One half-share warrant per unit upon conversion of debentures
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.75
|
| Placement agent: | Non-brokered
|
| Pricing date: | Dec. 22
|
| Stock price: | C$0.90 at close Dec. 22
|
|
|
© 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.
