Vice chairman of board buys debentures with 4.64% conversion premium
By Devika Patel
Knoxville, Tenn., Feb. 1 - Richmont Mines Inc. announced it completed a C$10 million private placement of five-year 7.6% unsecured convertible debentures with the vice chairman of the company's board, Bob Buchan, and two of his family members. The offering priced Jan. 11.
The debentures convert into common stock at C$12.17 per share and may be put after 18 months or redeemed after two years. The conversion price is a 4.64% premium to the Jan. 10 closing share price of C$11.63.
The gold explorer is based in Montreal.
| Issuer: | Richmont Mines Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$10 million
|
| Maturity: | Five years
|
| Coupon: | 7.6%
|
| Conversion price: | C$12.17
|
| Conversion premium: | 4.64%
|
| Put: | After 18 months
|
| Call: | After two years
|
| Warrants: | No
|
| Investor: | Bob Buchan
|
| Pricing date: | Jan. 11
|
| Settlement date: | Feb. 1
|
| Stock symbol: | Toronto: RIC
|
| Stock price: | C$11.90 at close Jan. 11
|
| Market capitalization: | C$389.13 million
|
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