Two-year unsecured subordinated debentures sold to fund Hydro-sep unit
By Devika Patel
Knoxville, Tenn., Sept. 21 – Formation Fluid Technology Inc. said it has arranged a C$3 million non-brokered private placement of convertible unsecured subordinated debentures.
The 8% convertibles mature in two years and convert to common stock at C$0.20 per share, which is a 25% premium to the Sept. 18 closing share price of C$0.16.
Settlement is expected in October.
Proceeds will be used to build an additional Hydro-sep unit for general working capital.
The Calgary, Alta., company is developing a process to desalinate oilfield-produced water for recycling, reuse and release.
| Issuer: | Formation Fluid Technology Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$3 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Conversion price: | C$0.20
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Sept. 21
|
| Stock symbol: | TSX Venture: FFM
|
| Stock price: | C$0.16 at close Sept. 18
|
| Market capitalization: | C$6.76 million
|
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