Deal sells two-year 10% debentures; 1,600 warrants per C$1,000 bought
By Devika Patel
Knoxville, Tenn., Oct. 8 - Innovative Composites International Inc. said it raised C$1.13 million in the second tranche of a non-brokered private placement of convertible debenture units and has increased the deal to C$3.2 million from C$3.17 million. The deal priced for between C$2 million and C$3 million on Aug. 14 and raised C$2.02 million on Sept. 5.
The 10% convertibles mature in two years and convert to common stock at C$0.03 per share, which is a 25% discount to the Aug. 13 closing share price of C$0.04.
Investors also receive 1,600 warrants for every C$1,000 invested. Each warrant is exercisable at C$0.05 for two years. The strike price reflects a 25% premium to the Aug. 13 closing share price.
Proceeds will be used to repay debt and for general working capital purposes.
Based in Toronto, Innovative Composites makes and sells lightweight structural products utilizing fiber-reinforced thermoplastics for use in the marine, construction, automotive, military, recreational vehicles, equine and furniture industries.
| Issuer: | Innovative Composites Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$3.2 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Conversion price: | C$0.03
|
| Warrants: | 1,600 warrants per C$1,000 invested
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.05
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 14
|
| Revised: | Oct. 7
|
| Settlement dates: | Sept. 5 (for C$2,016,875), Oct. 18 (for C$1,129,000)
|
| Stock symbol: | TSX Venture: IC
|
| Stock price: | C$0.04 at close Aug. 13
|
| Market capitalization: | C$2.08 million
|
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