By Laura Lutz
Des Moines, May 17 - RepeatSeat Ltd. priced a private placement of units for up to C$4 million as well as an offering of convertible debentures for C$7 million.
In the private placement of units, the company plans to sell up to 16 million units of one share and one warrant at C$0.25 per unit. Each warrant will be exercisable at C$0.40 for one year.
The unit placement, which will be non-brokered, is expected to settle on May 25.
Proceeds from the units will be used to retire about C$1 million of existing debt and for general corporate purposes.
The company will also sell C$3.5 million principal amount of convertible debentures to each of two mezzanine debt lenders.
The five-year debentures will have a coupon of 10%, payable monthly. They will be convertible into common shares at C$0.25 in the first two years, at C$0.275 in the third year, at C$0.30 in the fourth year and at C$0.33 in the fifth year.
If the company completes another offering at less than the current price within the first year following settlement of the debenture financing, the conversion price will be adjusted to the higher of the price of the new offering and the closing market price of the company's shares at that time.
Proceeds from the debentures will be used to fund the company's planned acquisition of Janda Products Canada Ltd. The acquisition is conditional upon completion of both financings.
Based in Calgary, Alta., RepeatSeat provides ticketing and other services to entertainment venues.
Units
| Issuer: | RepeatSeat Ltd.
|
| Issue: | Units of one share and one warrant
|
| Amount: | C$4 million
|
| Units: | 16 million
|
| Price: | C$0.25
|
| Warrants: | One per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.40
|
| Agent: | Non-brokered
|
| Pricing date: | May 17
|
| Settlement date: | May 25
|
| Stock symbol: | TSX Venture: RPS
|
| Stock price: | C$0.29 at close May 16
|
|
|
| Convertible debentures
|
| Issuer: | RepeatSeat Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$7 million
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.25 in the first two years, C$0.275 in the third year, C$0.30 in the fourth year, C$0.33 in the fifth year
|
| Pricing date: | May 17
|
| Stock symbol: | TSX Venture: RPS
|
| Stock price: | C$0.29 at close May 16
|
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