By Laura Lutz
Des Moines, Nov. 17 - Mart Resources, Inc. upsized a private placement of secured and unsecured convertible promissory notes to C$18.375 million.
The two-year notes bear interest at 8% annually. Of the notes, C$8.875 million in unsecured notes is convertible into units at C$0.66 per unit in the first year and at C$0.75 per unit thereafter. The C$9.5 million in secured notes is convertible into units at C$0.66 per unit in the first year and at C$0.75 per unit thereafter.
The deal priced on Oct. 24 as a C$17.75 million offering of C$8.875 of unsecured notes and C$8.875 million of secured notes.
The units issued from the conversion of the unsecured notes include one share and one warrant with each warrant exercisable for two years, at C$0.66 in the first year and C$0.75 in the second year.
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$0.79 in the first year and at C$0.90 in the second year.
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$18.375 million
|
| Pricing date: | Oct. 24
|
| Amended: | Nov. 17
|
| Stock symbol: | TSX Venture: MMT
|
| Stock price: | C$0.60 at close Oct. 23
|
| Stock price: | C$0.46 at close Nov. 17
|
|
|
| Unsecured notes
|
| Amount: | C$8.875 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Into units of one share and one warrant at C$0.66 per unit in the first year; at C$0.75 per unit in the second year
|
| 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$0.66 in the first year; C$0.75 in the second year
|
|
|
| Secured notes
|
| Amount: | C$9.5 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Into units of one share and one half-share warrant at C$0.66 per unit in the first year; at C$0.75 per unit in the second year
|
| 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$0.79 in the first year; C$0.90 in the second year
|
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