Company increases number of warrants, lifts debentures' coupon to 12%
By Devika Patel
Knoxville, Tenn., Aug. 19 - Niocan Inc. said it revised the terms of a private placement of units with investor Nio-Metals Holdings LLC, which will now raise at least C$3 million. The deal priced for between C$2 million and C$4 million on June 29.
The company will sell between 3,000 and 4,000 units of one C$1,000 12% debenture and 520 warrants at C$1,000.00 per unit. Nio-Metals will purchase at least 2,000 units, and Niocan has found other purchasers for an additional 1,000 units.
Each one-year debenture may be converted to shares at C$1.45 per common share. Niocan may redeem the debentures prior to maturity at 105.
Each warrant is exercisable at C$1.45 for three years. The strike price and conversion price is a 20.83% premium to the June 28 closing share price of C$1.20.
Previously, the debentures carried a 10% coupon, each unit had only 370 two-year warrants, and the warrants would have expired in two years.
Settlement is expected Aug. 26. Nio-Metals may also nominate one member of the company's board of directors.
Niocan is a Montreal-based niobium exploration company.
| Issuer: | Niocan Inc.
|
| Issue: | Units of one C$1,000 principal amount of debenture and 520 warrants
|
| Amount: | C$3 million (minimum), C$4 million (maximum)
|
| Units: | 3,000 (minimum), 4,000 (maximum)
|
| Price: | C$1,000
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Call: | At 105
|
| Conversion price: | C$1.45
|
| Warrants: | 520 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.45
|
| Investor: | Nio-Metals Holdings LLC
|
| Pricing date: | June 29
|
| Revised: | Aug. 19
|
| Settlement date: | Aug. 26
|
| Stock symbol: | Toronto: NIO
|
| Stock price: | C$1.20 at close June 29
|
| Market capitalization: | C$21.8 million
|
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