Offerings, brokered by Canaccord Genuity, to fund debt reorganization
By Devika Patel
Knoxville, Tenn., Oct. 26 - Russell Breweries Inc. said its private placement of two-year 10% convertible debentures will be conducted by Canaccord Genuity Corp. The offering priced as a non-brokered deal on Oct. 6.
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 C$0.08, the closing share price on Oct. 5.
The company will also be conducting a private placement of units at C$0.08 per unit for additional proceeds of C$1 million, which will also be brokered by Canaccord Genuity Corp. 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.
There is a C$500,000 greenshoe, which may be raised through debentures or units.
Proceeds will be used to reorganize long term debt, 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
|
| Greenshoe: | C$500,000
|
| Agent: | Canaccord Genuity Corp.
|
| Pricing date: | Oct. 6
|
| Amended: | Oct. 26
|
| 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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