By Devika Patel
Knoxville, Tenn., July 15 - Norwood Resources Ltd. said it plans to issue 10% secured convertible promissory notes in a $5 million private placement.
The notes mature in two years. They may be converted into units at C$0.07 per unit. Each unit will consist of one common share and one warrant. Each warrant will be exercisable at C$0.10 for two years.
The warrants may expire sooner if the company's shares trade above C$0.50 for 10 consecutive trading days.
The notes may be prepaid with a fee of 5% with 30 days' notice to the holders.
Proceeds will be used for drilling.
Based in Vancouver, B.C., Norwood is an oil and natural gas exploration company.
| Issuer: | Norwood Resources Ltd.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $5 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.07 per unit
|
| Warrants: | One per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Pricing date: | July 15
|
| Stock symbol: | TSX Venture: NRS
|
| Stock price: | C$0.07 at close July 15
|
| Market capitalization: | C$6.74 million
|
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