Orbite greenshoe ups units of 5% convertibles, warrants to C$15 million

By Susanna Moon

Chicago, May 6 – Orbite Aluminae Inc. said underwriters fully exercised the C$5 million over-allotment option on its units of a 5% five-year convertible unsecured unsubordinated debenture and 1,077 share purchase warrants, into which the debentures are convertible.

This brings the total deal size to C$15 million, according to a press release.

Euro Pacific Canada Inc. is the underwriter.

Orbite sold C$10 million of the units on April 6 with a greenshoe for C$5 million more shares, according to a separate press release.

As previously announced, Orbite had priced C$8.5 million units on March 31 on a bought-deal basis with an over-allotment option for C$6.5 million more units for a total size of C$15 million.

The debentures will mature on April 6, 2020.

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.

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