Deal sells one-year 12% convertible debentures, which convert to units
By Devika Patel
Knoxville, Tenn., Feb. 9 - MBMI Resources Inc. said it has negotiated a C$1.5 million private placement of 12% convertible debentures.
The notes mature in one year and are initially convertible into units at C$0.10 per unit. Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at $0.12 for one year.
The conversion price reflects a 300% premium to the Feb. 8 closing share price of $0.025. The warrant strike price is a 380% premium to that price.
The company also said it plans a consolidation of its common shares on a 5 to 1 basis, under which one common share will be issued for every five pre-consolidation common shares held. The conversion price per unit and exercise price of the warrants are based on the share consolidation being completed on a 5 to 1 basis. If the consolidation is completed at a different ratio, the conversion price and warrant exercise prices will be adjusted.
MBMI Resources is a Vancouver, B.C.-based mining company focused on the exploration and development of nickel mineral properties.
| Issuer: | MBMI Resources Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$1.5 million
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Conversion price: | C$0.10
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | One year
|
| Warrant strike price: | $0.12
|
| Pricing date: | Feb. 9
|
| Stock symbol: | TSC Venture: MBR
|
| Stock price: | C$2.89 at close Feb. 8
|
| Market capitalization: | C$4.54 million
|
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