By Devika Patel
Knoxville, Tenn., Nov. 20 - IND DairyTech Ltd. said it has negotiated a private placement of series A preferred stock for about C$30.8 million.
The company will sell 59,661,014 preferreds at a weighted average of C$0.52 apiece to SAIF Partners III LP. The preferrreds are convertible into common shares on a 1 for 1 basis.
The placement will close in two tranches. The first tranche of 36,292,679 preferreds will be sold for approximately C$15.4 million in December. SAIF will be required to purchase a second tranche of 9,340,445 preferreds for approximately C$6.15 million if the company meets certain goals.
If SAIF is required to make the second tranche, the investor is entitled, but not obligated, to increase the size of the tranche by approximately C$9.25 million by purchasing an additional 14,027,890 preferreds
Proceeds will be used by the company to fund its business expansion, working capital and capital expenditure.
IND DairyTech is a raw milk producer based in Delta, B.C.
| Issuer: | IND DairyTech Ltd.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | C$30.8 million (approximate)
|
| Shares: | 59,661,014
|
| Conversion ratio: | Into 59,661,014 common shares (one for one basis)
|
| Warrants: | No
|
| Investor: | SAIF Partners III LP
|
| Pricing date: | Nov. 20
|
| Stock symbol: | TSX Venture: IND
|
| Stock price: | C$0.50 at close Nov. 19
|
| Market capitalization: | C$57.1 million
|
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