Company conducts offering through Jones Gable to fund commercial plant
By Devika Patel
Knoxville, Tenn., April 7 – NovX21 Inc. said it will take in between C$1 million and C$2.5 million in a private placement of convertible debenture units. Jones Gable & Co. Ltd. is the agent.
The company will sell between 1,000 and 2,500 units of a C$1,000 8% unsecured convertible subordinated debenture and 5,000 warrants at C$1,000 per unit on a commercially reasonable efforts basis.
The convertibles mature in four years on March 31, 2019 and will be convertible into common stock at C$0.10 per share in the first and second year, at C$0.11 per share in the third year and at C$0.121 per share in the fourth year. Each warrant is exercisable at C$0.20 for three years.
The conversion prices are 42.86%, 57.14% and 72.86% premiums to C$0.07, the April 6 closing share price. The strike price is a 185.71% premium to that price.
Settlement is expected May 7.
Proceeds will be used to build a new commercial plant in Thetford Mines, Quebec, and for general corporate purposes.
The Montreal company recovers platinum group elements and precious metals from recycled materials.
| Issuer: | NovX21 Inc.
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| Issue: | Units of a C$1,000 unsecured convertible subordinated debenture and 5,000 warrants
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| Amount: | C$1 million (minimum), C$2.5 million (maximum)
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| Units: | 1,000 (minimum), 2,500 (maximum)
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| Price: | C$1,000
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| Maturity: | March 31, 2019 (four years)
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| Coupon: | 8%
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| Conversion price: | C$0.10 per share in the first and second year, C$0.11 per share in the third year, C$0.121 per share in the fourth year
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| Warrants: | 5,000 warrants per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | C$0.20
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| Agent: | Jones Gable & Co. Ltd.
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| Pricing date: | April 7
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| Settlement date: | May 7
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| Stock symbol: | TSX Venture: NOV
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| Stock price: | C$0.07 at close April 6
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| Market capitalization: | C$7.67 million
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