Proceeds to be used for developing, expanding Jabiru Satellite Project
By Devika Patel
Knoxville, Tenn., May 25 - NewSat Ltd. said it completed a A$7.5 million private placement of stock and convertibles via agent Lazard. The company said it will also be able to access up to A$5 million through a secured facility with the National Australia Bank.
Khattar Holdings Pte Ltd. invested A$1 million by buying a five-year 14% unsecured convertible note with a conversion price of A$0.016 per ordinary share, which is a 60% premium to A$0.01, the closing share price on May 24. Khattar may put the note after three years.
The company also sold A$6.5 million of shares at A$0.007 per share, a 30% discount to the closing share price on May 24.
Investors in the shares placement, including Khattar Capital, New Zealand Funds Management, DAUN Consulting (Singapore) and others, also received one warrant for every two shares purchased. Each warrant is exercisable at A$0.01 for five years. The strike price is identical to the May 24 share price.
The A$5 million line of credit with National Australia Bank accrues interest at 9.3% and matures in October 2012.
Proceeds will be used for developing and expanding the Jabiru Satellite Project. The placement will give NewSat sufficient funds to progress the project to "financial close" or final investment decision.
The satellite and broadband communication services provider is based in Southbank, Australia.
| Issuer: | NewSat Ltd.
|
| Issue: | Ordinary shares, unsecured convertible notes
|
| Amount: | A$7.5 million
|
| Agent: | Lazard
|
| Settlement date: | May 25
|
| Stock symbol: | Australia: NWT
|
| Stock price: | A$0.008 at close May 25
|
| Market capitalization: | A$62.79 million
|
|
|
| Shares
|
| Amount: | A$6.5 million
|
| Price: | A$0.007
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | A$0.01
|
| Investors: | Khattar Capital, New Zealand Funds Management, DAUN Consulting (Singapore)
|
|
|
| Convertibles
|
| Amount: | A$1 million
|
| Maturity: | Five years
|
| Coupon: | 14%
|
| Conversion price: | A$0.016
|
| Conversion premium: | 60%
|
| Put: | After three years
|
| Warrants: | No
|
| Investor: | Khattar Holdings Pte Ltd.
|
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