Non-brokered deal sells units of one 9% preferred and 83.33 warrants
By Devika Patel
Knoxville, Tenn., July 6 – Loyalist Group Ltd. said it raised C$2.12 million in the initial tranche of a non-brokered private placement of units. The deal priced for between C$2.5 million and C$8 million on June 22.
The company is selling between 250,000 and 800,000 units of one 9% preferred share and 83.33 warrants at C$10.00 per unit. Loyalist sold 211,500 units in the first tranche.
The preferreds are mandatorily redeemable after two years and may be redeemed for cash before then.
Each whole warrant is exercisable at C$0.12 for two years. The strike price is a 33.33% premium to the June 19 closing share price of C$0.09.
Proceeds will be used as working capital.
Toronto-based Loyalist Group provides educational services, primarily English as a Second Language and professional development courses.
| Issuer: | Loyalist Group Ltd.
|
| Issue: | Units of one preferred share and 83.33 warrants
|
| Amount: | C$2.5 million (minimum), C$8 million (maximum)
|
| Units: | 250,000 (minimum), 800,000 (maximum)
|
| Price: | C$10.00
|
| Maturity: | Two years
|
| Dividend: | 9%
|
| Call: | Yes
|
| Warrants: | 83.33 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.12
|
| Agents: | Non-brokered
|
| Pricing date: | June 22
|
| Settlement date: | July 6 (for C$2,115,000)
|
| Stock symbol: | TSX Venture: LOY
|
| Stock price: | C$0.09 at close June 19
|
| Market capitalization: | C$15.23 million
|
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