| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Vogogo Inc. > News item |
Vogogo closes deal; C$34.5 million 8% convertibles extended to 2020
By Susanna Moon
Chicago, Nov. 29 – Vogogo Inc. said it closed the acquisition required to extend the maturity of its convertible debentures.
As a result, the convertibles were automatically extended to the final maturity date of June 30, 2020, according to a company update on Thursday.
Vogogo priced C$30 million, or 30,000, of the units on May 15, as previously reported.
The company then said on June 21 that underwriters had exercised the C$4.5 million over-allotment option for its units consisting of an 8% senior unsecured extendible non-redeemable convertible debenture and 1,000 warrants, lifting the total deal size to C$34.5 million.
The initial maturity of the convertible debentures was the earlier of either Nov. 30, 2018 or the date the company terminates its acquisition of 14,000 cryptocurrency mining machines plus supporting infrastructure.
If the acquisition had been terminated, holders of the convertible debentures would have received 104% of the issue price and retained ownership of the warrants in each unit.
For the maturity to be extended to June 30, 2020, the acquisition had to be completed by the initial maturity date of Nov. 30, 2018.
If the maturity date is extended, the company has the option to repay the convertible debentures by delivering common shares equal to 95% of the volume weighted average trading price of the common shares on the Canadian Securities Exchange.
The convertible debentures were priced at par and are convertible into 2,000 common shares representing a conversion price of C$0.50.
Each warrant will have a strike price of C$0.70 and will expire in two years.
Canaccord Genuity Corp. was the bookrunner.
Vogogo is a Calgary, Alta.-based technology services provider.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.