By Laura Lutz
Des Moines, Sept. 6 - Terra Nostra Resources Corp. announced details of its $12.5 million private placement of senior secured convertible notes in an 8-K filed with the Securities and Exchange Commission on Wednesday.
The notes mature in nine months and bear interest at 10% per year. Interest is payable quarterly.
The principal and interest on the notes may be converted into common stock at $1.75 per share.
As previously reported, the company closed a first tranche of the deal for $6.9 million on Aug. 29.
The three investors in the first tranche also received warrants for 80% of the number of shares into which their notes are convertible, exercisable at $1.75 per share for five years, according to the 8-K.
Terra Nostra said in a Tuesday news release that, in addition to the $12.5 million placement, it expects to raise $35 million to $50 million in a subsequent offering.
Axiom Capital Management is the placement agent.
Proceeds will be used for working capital.
Based in Pasadena, Calif., Terra Nostra develops copper and stainless steel products in China.
| Issuer: | Terra Nostra Resources Corp.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $12.5 million
|
| Maturity: | Nine months
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $1.75
|
| Warrants: | For 80% of number of shares underlying notes
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.75
|
| Agent: | Axiom Capital Management
|
| Announcement date: | Sept. 4
|
| Settlement date: | Aug. 29 (for $6,895,165)
|
| Stock symbol: | OTCBB: TNRO
|
| Stock price: | $1.30 at close Aug. 29
|
| Stock price: | $1.35 at close Sept. 4
|
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