Northern Financial to use stock offering proceeds to repay debentures

Company's $3.16 million of debentures will be repaid with shares, cash

By Devika Patel

Knoxville, Tenn., Nov. 16 - Northern Financial Corp. said it negotiated an agreement with the holders of its $3.16 million of debentures to repay the principal in a combination of cash and common shares.

Northern will repay $1,627,500 of the principal by Dec. 20. It will conduct a common share financing to finance all or part of this payment.

The investors will also receive $1,535,500 in common shares for the remaining principal. The shares will be issued to the investors at the same price as those sold in the financing.

Following this repayment, the company will have no debt other than its bank line of credit.

Based in Toronto, Northern Financial owns Northern Securities, an investment dealer that provides financial advisory services to retail and institutional clients. Northern also provides investment banking services to small-cap companies.

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