By Sheri Kasprzak
New York, Oct. 21 - Response Biomedical Corp. said it has completed a private placement of convertible debentures for C$1,579,000.
The company issued 1,579 units at C$1,000 each.
The units include C$1,000 in principal of debentures and 1,190 warrants. Each warrant is exercisable for another share at C$0.50 each for two years.
The 7% debentures mature in three years and are convertible into common shares at C$0.42 each for the first two years and C$0.47 each for the third year.
Response may redeem the debentures if its stock price exceeds 200% of the conversion price for 10 consecutive trading days.
The deal replaces an earlier planned offering of up to C$2.494 million units, to be sold as 5.8 million units of stock and 0.5 warrants at C$0.43 each.
Proceeds from the offering will be used for infrastructure, personnel and licensing fees related to programs and relationships the company is currently engaged in with 3M, Roche Diagnostics and Shionogi.
Based in Vancouver, B.C., Response develops diagnostic tests.
Issuer: | Response Biomedical Corp.
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Issue: | Units of C$1,000 in principal of convertible debentures and 1,190 warrants
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Amount: | C$1,579,000
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Units: | 1,579
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Price: | C$1,000
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Coupon: | 7%
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Conversion price: | C$0.42 for the first two years; C$0.47 for the third year
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Call: | Redeemable if the company's stock exceeds 200% of the conversion price for more than 10 consecutive trading days
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Warrants: | For 1,190 shares per unit
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Warrant expiration: | Two years
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Warrant strike price: | C$0.50
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Settlement date: | Oct. 21
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Stock price: | C$0.39 at close Oct. 21
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