By Sheri Kasprzak
New York, Nov. 23 - Royal Laser Corp. said it negotiated a private placement for up to C$6.5 million and at least C$4 million.
The company intends to sell convertible debentures that bear interest at 8% annually. The three-year debentures are convertible into shares at C$1.05 each.
The deal is slated to close Nov. 29.
Canaccord Capital Corp. is the placement agent.
Proceeds will be used for the company's acquisition of Smokey Manufacturing Inc. and Thunder Tool and Manufacturing Ltd. The rest will be used for general corporate purposes.
In other news, Royal Laser said GE Commercial Finance, Equipment Financing Canada agreed to provide a C$4.3 million secured term loan to the company.
Based in Toronto, Royal Laser makes laser-based technologies used in metalworking and woodworking.
| Issuer: | Royal Laser Corp.
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| Issue: | Convertible debentures
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| Amount: | C$6.5 million (maximum); C$4 million (minimum)
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| Maturity: | Three years
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| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
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| Conversion price: | C$1.05
|
| Warrants: | No
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| Placement agent: | Canaccord Capital Corp.
|
| Pricing date: | Nov. 23
|
| Settlement date: | Nov. 29
|
| Stock price: | C$0.68 at close Nov. 22
|
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