Unsecured debentures due in three years, convert at C$0.10 per share
By Devika Patel
Knoxville, Tenn., May 19 – Robex Resources Inc. said it will raise C$10 million in a non-brokered private placement of unsecured convertible debentures.
The company will sell the three-year 10% convertibles in C$1,000 increments.
The debentures convert into common stock at C$0.10 per share. The conversion price is an 11.11% premium to the C$0.09 closing share price on May 18 and is also equal to a conversion ratio of 10,000 common shares per C$1,000 of debentures.
The debentures may be called at 105. The company may force the conversion of the debentures at maturity if its share price equals or exceeds C$0.25 for 21 consecutive trading days preceding the maturity date.
The Cohen family may invest C$7 million.
Proceeds will be used for exploration at Nampala, equipment purchases and working capital, as well as to offset the increase in the U.S. dollar in regards to the Canadian dollar, as the company’s investment budget is determined in U.S. dollars.
The company also said that president and chief executive officer Georges Cohen loaned it C$2 million for short-term funding, which is needed to restart the equipment at the Nampala mine. The 10% loan will be repaid once the private placement settles.
Montreal-based Robex is a gold exploration company.
| Issuer: | Robex Resources Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$10 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Conversion price: | C$0.10
|
| Conversion premium: | 11.11%
|
| Conversion ratio: | 10,000 common shares per C$1,000 of debentures
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | May 19
|
| Stock symbol: | TSX Venture: RBX
|
| Stock price: | C$0.09 at close May 18
|
| Market capitalization: | C$26.36 million
|
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