Offering of 6% debentures conducted on brokered, non-brokered basis
By Devika Patel
Knoxville, Tenn., Jan. 18 - VendTek Systems Inc. said it arranged a private placement of units on Jan. 17. It will raise C$2.5 million through lead agent Versant Partners Inc. and agent syndicate member MGI Securities Inc. It also plans to raise about C$500,000 on a non-brokered basis.
The company will sell 2,500 units at C$1,000 per unit in the brokered offering and about 500 units in the non-brokered deal, with each unit consisting of a C$1,000 6% three-year unsecured convertible debenture and 500 warrants.
The debentures are convertible into common shares at an initial conversion price of C$0.64, a 52.38% premium to the Jan. 14 closing share price of C$0.42. They are redeemable at any time for a 3% premium.
Each warrant is exercisable at C$1.00 for three years. The strike price is 138.1% premium to the Jan. 14 closing share price.
The company said its second largest shareholder, Northern Rivers Fund, plans to buy about 500 units to complete the non-brokered portion of the offering. In addition, the company's largest shareholder, Privinvest Holding SAL, will also participate.
Proceeds will be used for general working capital purposes and to continue the company's expansion plans in its Brazilian operations.
VendTek is a software application and services company based in Port Coquitlam, B.C.
| Issuer: | VendTek Systems Inc.
|
| Issue: | Units of a C$1,000 unsecured convertible debenture and 500 warrants
|
| Amount: | C$3 million
|
| Units: | 3,000
|
| Price: | C$1,000
|
| Warrants: | 500 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.00
|
| Agents: | Versant Partners Inc. (lead), MGI Securities Inc. (for C$2.5 million), non-brokered (for about C$500,000)
|
| Investors: | Northern Rivers Fund (for about C$500,000), Privinvest Holding SAL
|
| Pricing date: | Jan. 17
|
| Stock symbol: | TSX Venture: VSI
|
| Stock price: | C$0.45 at close Jan. 17
|
| Market capitalization: | C$22.24 million
|
|
|
| Debentures
|
| Maturity: | Three years
|
| Coupon: | 6%
|
| Price: | Par of C$1,000
|
| Yield: | 6%
|
| Conversion price: | C$0.64
|
| Call: | 3% premium
|
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