Company is now selling shares, half-share warrants at C$0.40 per unit
By Devika Patel
Knoxville, Tenn., March 16 - Noveko International Inc. said it concluded the initial tranche of a private placement of units. The deal priced for C$5 million on Feb. 22 and the company raised C$2.51 million in this tranche; it also said it was revising the deal's terms to adjust the unit and warrant prices.
The company is now selling units at C$0.40 apiece. It sold 6,267,584 units in the first tranche.
The units each consist of one class A share and a half-share warrant, with each whole warrant exercisable at C$0.60 for three years. The strike price represents a 50% premium over the Feb. 21 closing share price of C$0.40.
The units originally were priced at C$0.45 and the warrants had a C$0.70 strike price, which was a 75% premium to the Feb. 21 closing price.
Settlement of the entire deal is expected April 8. The Canadian portion of the offering is non-brokered with the remainder being conducted by agent Barretto Securities Inc.
Montreal-based Noveko designs and markets ultrasound scanners.
| Issuer: | Noveko International Inc.
|
| Issue: | Units of one class A share and a half-share warrant
|
| Amount: | C$5 million
|
| Price: | C$0.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.60
|
| Agent: | Non-brokered, Barretto Securities Inc.
|
| Pricing date: | Feb. 22
|
| Revised: | March 16
|
| Settlement date: | March 16 (for C$2,507,034), April 8
|
| Stock symbol: | Toronto: ECO
|
| Stock price: | C$0.40 at close Feb. 21
|
| Market capitalization: | C$27.99 million
|
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