By Rebecca Melvin
New York, March 31 – Orbite Aluminae Inc. priced C$8.5 million units on a bought deal basis via underwriter Euro Pacific Canada Inc., which has the option to sell up to C$6.5 million of additional units for a total of C$15 million, according to a news release.
Each unit consists of a 5% convertible unsecured unsubordinated debenture and 1,077 share purchase warrants, into which the debentures are convertible.
The debentures are freely convertible at a conversion price of C$0.325 per common share plus a make-whole formula for recouping interest lost if converted before the debentures’ five-year maturity.
Proceeds will be used to fund the company's high purity alumina production facility in Cap-chat, Quebec, and for working capital and general corporate purposes.
The strike on the warrants is C$0.39 per share.
Montreal-based Orbite is an exploration and development stage company of ores, primarily alumina.
| Issuer: | Orbite Aluminae Inc.
|
| Issue: | Units of unsecured unsubordinated debentures and share purchase warrants
|
| Amount: | C$8.5 million units
|
| Greenshoe: | C$6.5 million
|
| Maturity: | April 6, 2020
|
| Coupon: | 5%
|
| Conversion price: | C$0.325
|
| Warrants: | 1,077 per unit
|
| Warrant strike price: | C$0.39
|
| Underwriter: | Euro Pacific Canada Inc.
|
| Pricing date: | March 31
|
| Settlement date: | April 6
|
| Stock symbol: | Toronto: ORT
|
| Stock price: | C$0.315 at close March 30
|
| Market capitalization: | C$89.82 million
|
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