Deal includes C$300,000 convertible greenshoe, addition C$150,000 units
New York, April 13 – Axios Mobile Assets Corp. said it completed its offerings of convertible debenture units and equity units, raising C$3.3 million from the convertibles and C$5.4 million from the equity units, according to a press release.
The total C$8.7 million amount includes C$1,525,000 from second closings on each of the offerings.
The debenture sale was increased from the original amount of C$3 million through exercise of C$300,000 of the C$500,000 greenshoe. Included in Monday’s announcement is a further C$1,075,000 from the second closing.
Axios also increased the unit sale with an additional closing for C$150,000.
In the debenture offering, Axios sold 3,300 units of a C$1,000 12% unsecured convertible debenture and 5,000 warrants at C$1,000 per unit. Each warrant is exercisable at C$0.20 for three years.
The convertibles mature in three years, and will be convertible into common stock at C$0.10 per share, or 10,000 shares per C$1,000 of debentures. The company may force conversion or redeem the convertibles at 104. The debentures may also be put.
The conversion price is identical to the closing share price on Sept. 24, when terms were set. The warrant strike price is a 100% premium to that price.
Jacob Securities Inc. was the agent.
In the equity unit offering, Axios sold a total 72 million units of one common share and one warrant at C$0.075 per unit. The warrants are each exercisable at C$0.15 until March 25, 2017. The strike price is a 21.05% discount to the March 26 closing share price of C$0.19.
The company initially sold 70 million units raising C$5.15 million on March 26.
Primary Capital Inc. was the lead agent.
Proceeds from both financings will be used to manufacture composite pallet inventory, for working capital and general corporate purposes, and for costs related to the offerings.
“We will now be moving forward with plans to address the back-log of orders for the use of our pallets and to support the logistics and technology infrastructure for our expansion throughout the U.S. grocery market for eggs,” said Richard MacDonald, chief executive officer of Axios, in a news release.
Vaughn, Ont.-based Axios is a logistics company. It provides lightweight composite pallet technology that can be combined with its proprietary tracking and information system. Axios notes that its service increases sustainability performance for its users through the generation and subsequent retirement of carbon credits.
| Issuer: | Axios Mobile Assets Corp.
|
| Amount: | C$8.7 million
|
| Stock symbol: | CNSX: AXA
|
| Stock price: | C$0.18 at close on April 13
|
| Market capitalization: | $20.3 million
|
|
|
| Debenture units
|
| Issue: | Units of a C$1,000 unsecured convertible debenture and 5,000 warrants
|
| Amount: | C$3.3 million
|
| Greenshoe: | C$500,000 (amount includes exercise of C$300,000)
|
| Units: | 3,300
|
| Price: | C$1,000.00
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Conversion price: | C$0.10
|
| Conversion ratio: | 10,000 shares per C$1,000 of debentures
|
| Call: | At 104
|
| Put: | Yes
|
| Warrants: | 5,000 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.20
|
| Agent: | Jacob Securities Inc.
|
| Pricing date: | Sept. 25
|
| Stock price: | C$0.10 at close Sept. 24
|
|
|
| Equity units
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$5.4 million
|
| Units: | 72 million
|
| Price: | C$0.075
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | March 25, 2017
|
| Warrant strike price: | C$0.15
|
| Agent: | Primary Capital Inc. (lead)
|
| Co-manager: | Jacob Securities Inc.
|
| Settlement date: | March 26 for C$5.25 million, April 13 for C$150,000
|
| Stock price: | C$0.19 at close March 25
|
|
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
