By Angela McDaniels
Tacoma, Wash., Feb. 23 – The underwriter of Orbite Technologies Inc.’s bought-deal public offering of units exercised a C$1.06 million portion of its option, increasing the size of the issue to C$9.54 million.
Each unit consists of C$1,000 principal amount of 5% convertible debentures due 2021 and 2,500 three-year warrants, according to a company news release.
The conversion price and the warrant strike price are both C$0.40 per share, which is equal to the closing share price on Jan. 27.
Holders who convert will also receive an amount of shares equal to the additional interest amount that would have been received had the debentures been held until the maturity date divided by the current market price, which is the five-day volume-weighted average trading price of the company’s shares two days prior to conversion.
The make-whole amount will be reduced by 1% for each 1% that the current market price at the time of conversion exceeds the conversion price.
Euro Pacific Canada Inc. was the underwriter.
The company priced C$4 million of the units on Jan. 28 with a C$6 underwriter option. On Feb. 3, the initial C$4 million settled, the underwriter exercised C$1.54 million of its option, and C$2.94 million of outstanding supplier invoices were converted into 2,938 units. The underwriter has until March 4 to exercise the balance of its option.
Proceeds will be used to increase the production capacity of the company’s alumina plant, to begin the preliminary engineering for its conversion of the alumina extraction unit to the company’s chloride-based technology and for general corporate purposes.
Based in Montreal, Orbite Technologies is a clean technology company specializing in extracting processes for the mining industry, especially alumina extraction.
| Issuer: | Orbite Technologies Inc.
|
| Issue: | Units of warrants and C$1,000 principal amount of convertible debentures
|
| Amount: | C$9,542,000
|
| Units: | 9,542
|
| Price: | C$1,000 per unit
|
| Debenture maturity: | Feb. 3, 2021
|
| Debenture coupon: | 5%
|
| Conversion price: | C$0.40
|
| Warrants: | 2,500 per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.40
|
| Agent: | Euro Pacific Canada Inc.
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| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 3 for C$8,482,000 and Feb. 23 for C$1.06 million
|
| Stock symbol: | TSX: ORT
|
| Stock price: | C$0.40 at close Jan. 27
|
| Market capitalization: | C$114.32 million
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