By Devika Patel
Knoxville, Tenn., Aug. 3 - Proventure Income Fund announced that it plans to raise C$4.2 million through an unbrokered private placement of units.
The company plans to sell up to 2.4 million units at C$1.75 each. Each unit will be accompanied by one warrant, with each whole warrant exercisable at C$2.25 for two years.
The company also announced it has, through its subsidiary Proventure Operating Ltd. Partnership, entered into an agreement to purchase lands and buildings in Edmonton, Alta, for C$4.2 million. The closing of the transaction is set to occur by Aug. 31.
Proceeds of the placement will be used to complete the acquisition. If the acquisition is not completed, or if the fund finds alternative means of financing the acquisition, the proceeds of the placement will be used to fund further capital expenditures and business acquisitions and for general corporate purposes.
Over 25% and possibly 100% of the placement will be bought by insiders.
Proventure Income Fund is a Calgary, Alta., open-ended mutual fund trust.
| Issuer: | Proventure Income Fund
|
| Issue: | Units accompanied by one warrant
|
| Amount: | C$4.2 million
|
| Units: | 2.4 million
|
| Price: | C$1.75
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.25
|
| Pricing date: | Aug. 3
|
| Stock symbol: | TSX Venture: PVT-UN
|
| Stock price: | C$1.50 at close Aug. 2
|
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