Non-brokered offering sells two tranches of three-year 10% debentures
By Devika Patel
Knoxville, Tenn., June 23 - Run of River Power Inc. said it plans a C$5.1 million non-brokered private placement of 10% three-year convertible debentures. The deal will be conducted in two tranches of C$1.6 million and C$3.5 million respectively.
The first-tranche debentures are initially convertible into common stock at C$0.11 per share, a 22.22% premium to C$0.09, the closing share price on June 22.
The second tranche debentures will be convertible into shares at a rate equal to 125% of the share price, calculated using the five-day volume-weighted average price ending on the day immediately prior to Aug. 31.
Settlement of the initial C$1.6 million tranche is expected June 27.
Proceeds will be used for working capital and general corporate purposes.
Vancouver, B.C.-based Run of River develops hydroelectric power generation projects in British Columbia.
| Issuer: | Run of River Power Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$5.1 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion prices: | C$0.11 (tranche 1); 125% of five-day volume-weighted average price ending on day prior to Aug. 31 (tranche 2)
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | June 23
|
| Settlement date: | June 27 (for C$1.6 million)
|
| Stock symbol: | TSX Venture: ROR
|
| Stock price: | C$0.09 at close June 23
|
| Market capitalization: | C$9.06 million
|
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