By Devika Patel
Knoxville, Tenn., March 12 - Nemi Northern Energy & Mining Inc. said it raised C$11 million in a private placement of unsecured subordinated convertible debentures. The deal priced Feb. 21 for C$10 million with a C$3 million greenshoe, which was partially exercised.
The notes carry a coupon of 8%, payable semiannually in arrears. They will mature in five years and are convertible into common shares at any time at C$0.90 per share.
After two years, the company has the right to redeem the debentures in whole or in part. In addition, the company has the right to repay the principal amount of the debentures in common shares at a price equal to 95% of the weighted average trading price of the company's shares on the Toronto Stock Exchange for the 20-trading-day period ending five trading days prior to the redemption date or at maturity.
Canaccord Capital Corp. is the agent.
Proceeds will be used to fund the company's obligations in connection with the Peace River Coal LP.
Nemi Northern is a Vancouver, B.C.-based coal exploration company.
| Issuer: | Nemi Northern Energy & Mining Inc.
|
| Issue: | Unsecured subordinated convertible debentures
|
| Amount: | C$10,999,000
|
| Maturity: | Five years
|
| Coupon: | 8%, payable semiannually in arrears
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$0.90
|
| Warrants: | No
|
| Agent: | Canaccord Capital Corp.
|
| Pricing date: | Feb. 21
|
| Settlement date: | March 12
|
| Stock symbol: | Toronto: NNE.A
|
| Stock price: | C$0.80 at close Feb. 21
|
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