Units of one share, one warrant sold with 10% two-year debentures
By Devika Patel
Knoxville, Tenn., Aug. 15 - Tranzeo Wireless Technologies Inc. said it plans a C$2.22 million private placement of units and secured convertible debentures. It will sell C$1 million of units and C$1.22 million of convertibles.
The company will sell 5 million units of one common share and one warrant at C$0.20 per unit.
Each one-year warrant will be exercisable at C$0.30. The strike price represents a 36.36% premium to the Aug. 12 closing share price of C$0.22.
The 10% secured convertible debentures mature in two years and will be convertible into common stock at a conversion price of C$0.30 per share. There is an automatic conversion feature, which will be triggered if the common shares trade higher than C$0.60 for 20 consecutive trading days.
Proceeds will be used as working capital.
Based in Pitt Meadows, B.C., Tranzeo is a producer of high-speed wireless broadband communication systems.
| Issuer: | Tranzeo Wireless Technologies Inc.
|
| Issue: | Units of one common share and one warrant, secured convertible debentures
|
| Amount: | C$2,216,000
|
| Settlement date: | Aug. 15
|
| Stock symbol: | Toronto: TZT
|
| Stock price: | C$0.22 at close Aug. 12
|
| Market capitalization: | C$12.93 million
|
|
|
| Units
|
| Amount: | C$1 million
|
| Units: | 5 million
|
| Price: | C$0.20
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.30
|
|
|
| Convertibles
|
| Amount: | C$1,216,000
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Conversion price: | C$0.30
|
| Call: | Yes
|
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