By Devika Patel
Knoxville, Tenn., June 19 - Turbo Power Systems Inc. announced it has completed a £3 million private placement of a convertible loan note.
The three-year note matures June 30, 2011. It allows for an initial drawdown of £1.5 million with further tranches of £750,000 at the company's discretion. The first repayment is due nine months after the initial drawdown.
Interest will be calculated monthly at 1.17%, for an annualized rate of 15%.
The note is convertible at any time into either the company's common shares or subsidiary Turbo Power Systems Ltd.'s A shares at 4p per share.
If the note is repaid early, there will be a 12.5% fee.
The investors also received a warrant to acquire, in either the company's common shares or subsidiary Turbo Power Systems Ltd.'s A shares, up to 15% of the note's value at 3.5p per share. The warrant is exercisable for 10 years after the drawdown.
Proceeds will be used for general working capital purposes, strengthening the company's balance sheet and financing new and existing product developments.
Based in Calgary, Alta., Turbo Power develops products for power generation and power conditioning.
| Issuer: | Turbo Power Systems Inc.
|
| Issue: | Convertible loan note
|
| Amount: | £3 million
|
| Tenor: | June 30, 2011
|
| Coupon: | 15%
|
| Conversion price: | 4p
|
| Warrants: | For 15% of the note's value
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | 3.5p
|
| Settlement date: | June 19
|
| Stock symbol: | Toronto: TPS
|
| Stock price: | C$0.075 at close June 18
|
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