Investor will also provide C$4 million revolving credit facility
By Angela McDaniels
Tacoma, Wash., July 20 - Noveko International Inc. said it will issue a C$2 million convertible debenture to a private investment firm. The closing is expected to occur in mid-August.
The investor can convert the debenture, in whole or in part, into class A shares of the company at a conversion price of C$0.60 per share. The remaining portion of the debenture, if any, will be repaid at maturity at 1.5 times its par value.
The conversion price is a 17.6% premium to the company's C$0.51 closing share price on July 19.
The investor will also provide a senior secured revolving credit facility of up to C$4 million.
Both the debenture and credit facility will bear interest at an annual rate, compounded and paid monthly, of at least 12%. The interest rate will be adjusted upward for any changes in a selected chartered bank prime rate.
The debenture and the credit facility will mature 24 months after closing.
The company will use the proceeds to pursue its global growth objectives and for working capital.
Noveko makes products that use its antimicrobial filtration technologies as well as portable ultrasound scanners. It is based in Montreal.
| Issuer: | Noveko International Inc.
|
| Issue: | Convertible debenture
|
| Amount: | C$2 million
|
| Maturity: | Two years
|
| Coupon: | 12%, compounded and payable monthly; will be adjusted upward for any changes in selected chartered bank prime rate
|
| Conversion price: | C$0.60
|
| Payout at maturity: | 1.5 times par value of any portion not converted
|
| Warrants: | No
|
| Pricing date: | July 20
|
| Settlement date: | Mid-August
|
| Stock symbol: | Toronto: EKO
|
| Stock price: | C$0.51 at close July 19
|
| Market capitalization: | C$46.89 million
|
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