By Sheri Kasprzak
New York, Oct. 24 - Mart Resources, Inc. priced a C$17.75 million private placement of secured and unsecured convertible promissory notes.
The two-year notes bear interest at 8% annually. Of the notes, C$8,875,000 in unsecured notes is convertible into units at C$0.75 each. The C$8,875,000 in secured notes is convertible into units at C$0.75 each.
The units issued from the conversion of the unsecured notes include one share and one warrant with each warrant exercisable at C$0.75 for two years.
The units issued from the conversion of the secured notes include one share and one half-share warrant. Each whole warrant is exercisable at C$0.90 for two years.
Mart may reduce the conversion price of the notes if it conducts a private placement with an issue price 20% above the market price at the time of the placement. Mart may also force conversion of the notes if its stock trades above C$1.05 for more than 30 consecutive trading days.
Proceeds will be used for the repayment of C$8,875,000 in existing convertible notes. The rest will be used for drilling and testing wells on the Umusadege oil field and the Qua Ibo oil field in Nigeria, as well as for working capital.
Calgary, Alta.-based Mart is an oil and natural gas exploration company.
| Issuer: | Mart Resources, Inc.
|
| Issue: | Secured and unsecured convertible promissory notes
|
| Amount: | C$17.75 million
|
| Pricing date: | Oct. 24
|
| Stock symbol: | TSX Venture: MMT
|
| Stock price: | C$0.60 at close Oct. 23
|
|
|
| Unsecured notes
|
| Amount: | C$8,875,000
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Into units of one share and one warrant at C$0.75 per unit
|
| Call: | May force conversion if stock trades above C$1.05 for more than 30 consecutive trading days
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.75
|
|
|
| Secured notes
|
| Amount: | C$8,875,000
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Into units of one share and one half-share warrant at C$0.75 per unit
|
| Call: | May force conversion if stock trades above C$1.05 for more than 30 consecutive trading days
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.90
|
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