By Sheri Kasprzak
New York, Aug. 17 - Global Alumina Corp. said it has raised $100 million in a private placement of stock and a convertible debenture.
The company will sell 25 million shares at $2.00 each to Emirates International Investment Co. LLC.
The investor will also buy a $50 million convertible debenture.
The 10% debenture matures in five years and is convertible in whole into a total of 20 million common shares at $2.50 each.
The debenture will be convertible only during the 12-month period following the receipt of $700 million in equity securities required to complete the $200 million private placement already announced by Dubai Aluminium Co. Ltd. The proceeds, in fact, will be used to add to the $700 million the company must raise to close the $200 million private placement. The proceeds from that deal will be used to develop and construct an aluminum refinery.
Emirates International has the right to nominate a member to Global Alumina's board of directors for its investment.
SW Source Capital was the placement agent.
Based in Toronto, Global Alumina is a bauxite exploration company focused on aluminum production.
Stock
| Issuer: | Global Alumina Corp.
|
| Issue: | Stock
|
| Amount: | $50 million
|
| Shares: | 25 million
|
| Price: | $2.00
|
| Warrants: | No
|
| Investor: | Emirates International Investment Co. LLC
|
| Placement agent: | SW Source Capital
|
| Announcement date: | Aug. 17
|
| Stock price: | $1.57 at close Aug. 16 (last trade)
|
|
|
| Convertibles
|
| Issuer: | Global Alumina Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $50 million
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $2.50
|
| Conversion ratio: | Into 20 million common shares
|
| Warrants: | No
|
| Investor: | Emirates International Investment Co. LLC
|
| Placement agent: | SW Source Capital
|
| Announcement date: | Aug. 17
|
| Stock price: | $1.57 at close Aug. 16 (last trade)
|
|
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