Unsecured debentures due in three years, convert at C$0.10 per share
By Devika Patel
Knoxville, Tenn., July 2 – Robex Resources Inc. said it settled a C$7,105,000 non-brokered private placement of unsecured convertible debentures. The deal priced for C$10 million on May 19.
The company sold 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 Group invested C$6.5 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.
Montreal-based Robex is a gold exploration company.
| Issuer: | Robex Resources Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$7,105,000
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Conversion premium: | 11.11%
|
| Conversion price: | C$0.10
|
| Conversion ratio: | 10,000 common shares per C$1,000 of debentures
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | The Cohen Group (for C$6.5 million)
|
| Pricing date: | May 19
|
| Settlement date: | July 2
|
| Stock symbol: | TSX Venture: RBX
|
| Stock price: | C$0.09 at close May 18
|
| Market capitalization: | C$43.46 million
|
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