Non-brokered offering is expected to finance working capital purposes
By Devika Patel
Knoxville, Tenn., Oct. 2 – Magor Corp. said it raised C$1.53 million in the first tranche of a C$3 million non-brokered private placement of debenture units. The deal priced on Sept. 5.
The company is selling units of a C$1,000 12% three-year subordinated secured debenture and 500 warrants. The debenture converts to common stock at C$0.30 per share or may be redeemed at 102. Each warrant is exercisable at C$0.44 for three years.
The conversion price and warrant strike price are 76.47% and 158.82% premiums to the Sept. 4 closing share price of C$0.17.
Proceeds will be used for general working capital purposes.
Ottawa-based Magor provides visual collaboration solutions.
| Issuer: | Magor Corp.
|
| Issue: | Units of C$1,000 subordinated secured debenture and 500 warrants
|
| Amount: | C$3 million
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Conversion price: | C$0.30
|
| Conversion premium: | 31.58%
|
| Call: | At 102
|
| Warrants: | 500 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.44
|
| Agent: | Non-brokered
|
| Pricing date: | Sept. 5
|
| Settlement date: | Oct. 2 (for C$1,525,000)
|
| Stock symbol: | TSX Venture: MCC
|
| Stock price: | C$0.17 at close Sept. 4
|
| Market capitalization: | C$9.31 million
|
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