Non-brokered offerings raise funds for debt reorganization, marketing
By Devika Patel
Knoxville, Tenn., Oct. 6 - Russell Breweries Inc. announced it has arranged a non-brokered private placement of 10% two-year convertible debentures.
The C$1 million in debentures will be convertible into common shares at C$0.15 per share. The conversion price is an 87.5% premium to the C$0.08 closing share price on Oct. 5.
The company will also be conducting a non-brokered private placement of units at C$0.08 per unit for additional proceeds of C$1 million. Each unit consists of one common share and one warrant, with each warrant exercisable at C$0.15 for two years, also an 87.5% premium to the Oct. 5 price.
Proceeds will be used to reorganize long-term debt, to enhance marketing efforts and for general working capital requirements.
Russell is a brewing company based in Vancouver, B.C.
| Issuer: | Russell Breweries Inc.
|
| Issue: | Convertible debentures, units of one common share and one warrant
|
| Amount: | C$2 million
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 6
|
| Stock symbol: | TSX Venture: RB
|
| Stock price: | C$0.08 at close Oct. 5
|
| Market capitalization: | C$2.67 million
|
|
|
| Debentures
|
| Amount: | C$1 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.15
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$1 million
|
| Price: | C$0.08
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
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