Deal offers shares, 3% convertibles and funds Bayovar potash project
By Devika Patel
Knoxville, Tenn., Nov. 29 - Americas Petrogas Inc. said Friday that it completed a second and final tranche of a non-brokered private placement that priced on Nov. 1. The deal, which originally only included C$16 million of stock but was revised Nov. 15, raised C$34.35 million through unsecured convertible notes and common stock. The company took in C$17.5 million on Nov. 17.
The company sold 28.8 million common shares at C$1.00 apiece for C$28.8 million and C$5.55 million of convertibles. It sold 17.5 million shares for C$17.5 million in the first tranche and 11.3 million shares in the second for C$11.3 million.
The price per share represents a 9.09% discount to C$1.10, the Oct. 29 closing share price.
The 3% notes are unsecured and have a three-year term. They are convertible into common shares from time to time at a price of C$1.00 per share, also a 9.09% discount to the Oct. 29 share price.
Proceeds will be used for exploration and development of the company's Argentine oil and gas properties, to advance the Bayovar potash project and for general working capital purposes.
Americas Petrogas is a Calgary, Alta.-based oil and gas exploration and development company.
Issuer: | Americas Petrogas Inc.
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Issue: | Common shares, unsecured convertible notes
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Amount: | C$34.35 million
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Warrants: | No
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Agent: | Non-brokered
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Pricing date: | Nov. 1
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Revised: | Nov. 15
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Settlement date: | Nov. 17 (for C$17.5 million), Nov. 26 (for C$16.85 million)
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Stock symbol: | TSX Venture: BOE
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Stock price: | C$1.05 at close Nov. 1
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Market capitalization: | C$145.07 million
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Shares
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Amount: | C$28.8 million
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Shares: | 28.8 million
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Price: | C$1.00
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Notes
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Amount: | C$5.55 million
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Maturity: | Three years
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Coupon: | 3%
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Price: | Par
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Yield: | 3%
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Conversion price: | C$1.00
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Conversion discount: | 9.09%
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