By Sheri Kasprzak
Atlanta, March 17 - Info Touch Technologies Corp. said it will raise C$2.1 million in a private placement of convertible promissory notes.
The notes mature March 31, 2008, bear interest at 8% annually and are convertible into common shares at C$0.90 each.
The conversion price will vary, from time to time, and will be the lower of C$0.90 and market value.
If, at maturity, Info Touch's conversion price equals at least C$0.90, the promissory notes will automatically convert into common shares at that price. If the conversion price is less than C$0.90, the company may force conversion, repay the outstanding principal and interest or repay part of the outstanding principal and interest, with the balance being converted into common shares.
The company may also force conversion of the notes on the first anniversary of the closing date at the then-applicable conversion price. The company may also redeem the notes, in whole or in part plus interest, on the first anniversary of the closing.
GMP Securities Ltd. is the placement agent.
The offering is expected to close March 31.
Info Touch, based in Burnaby, B.C., is a self-service bill payment provider. It plans to use the proceeds for working capital.
| Issuer: | Info Touch Technologies Corp.
|
| Issue: | Convertible promissory notes
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| Amount: | C$2.1 million
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| Maturity: | March 31, 2008
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$0.90
|
| Call: | May force conversion if stock price exceeds C$0.90 per share at maturity. May also redeem notes, in whole or part, on the first anniversary of closing. May repay all or part of the principal and interest at maturity if stock is below C$0.90.
|
| Warrants: | No
|
| Placement agent: | GMP Securities Ltd.
|
| Pricing date: | March 16
|
| Settlement date: | March 31
|
| Stock price: | C$0.60 at close March 16
|
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