By Laura Lutz
Des Moines, Oct. 19 - Tyler Resources Inc. plans to settle a private placement of convertible debenture units for up to C$2,000,180 proceeds, according to an 8-K filing with the Securities and Exchange Commission.
The company intends to sell up to 2,041 units at C$980 per unit. Each unit consists of a convertible debenture with a face value of $1,000 and 500 series B warrants.
The debentures bear interest at 10% annually and mature on the first business day that is at least two years and one day after the closing date. They carry a conversion price of C$0.55 per share.
Interest payments may be made in cash or shares.
Any time after Oct. 30, 2007, Tyler may redeem the debentures for C$1,020 per debenture in cash or at a conversion price of C$0.50 per share, at the holder's option.
Upon conversion, holders will also receive accrued interest up to but excluding the conversion date.
Each warrant is exercisable for one common share at C$0.60 for two years.
The company may accelerate the expiry of the warrants to 30 days from giving notice if the closing price of its common shares is at least C$0.90 for 20 consecutive trading days, or, following a four-month hold period, upon notice to holders.
The agent, Jennings Capital Inc., has a greenshoe for up to 510 additional units.
Settlement is expected on Oct. 31.
With headquarters in Calgary, Alta., Tyler is an exploration company focused on base and precious metals projects in Mexico.
| Issuer: | Tyler Resources Inc.
|
| Issue: | Units of a convertible debenture and 500 series B warrants
|
| Amount: | C$2,000,180 (proceeds)
|
| Units: | 2,041
|
| Price: | C$980
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Conversion price: | C$0.55 per share
|
| Call: | Oct. 30, 2007 onwards for C$1,020 in cash or converted to stock at C$0.50, at holder's option
|
| Warrants: | 500 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60
|
| Agent: | Jennings Capital Inc.
|
| Pricing date: | Oct. 19
|
| Settlement: | Oct. 31
|
| Stock symbol: | TSX Venture: TYS
|
| Stock price: | C$0.455 at close Oct. 18
|
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