By Devika Patel
Knoxville, Tenn., Aug. 8 - Reef Resources Ltd. said it will raise up to C$2.5 million by selling 500 10% convertible debentures of C$5,000 each in a non-brokered private placement.
The debentures mature in six years.
The debentures will be convertible into common shares at the holder's option at any time prior to maturity at a conversion price of C$0.30 in the first two years and at C$0.50 thereafter.
Interest is payable quarterly after one year.
Proceeds will be used to finance the company's planned acquisition of the oil-producing Kakwa Property in Grande Prairie, Alta.
Based in Calgary, Alta., Reef Resources is an oil and gas company.
| Issuer: | Reef Resources Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$2.5 million
|
| Debentures: | 500 at C$5,000 each
|
| Maturity: | Six years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.30 in the first two years, C$0.50 thereafter
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 8
|
| Stock symbol: | TSX Venture: REE
|
| Stock price: | C$0.14 at close Aug. 8
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
