By Susanna Moon
Chicago, Aug. 13 – HPQ Silicon Resources Inc. said the Quebec government has subscribed to a C$1.8 million 5% five-year unsecured convertible debenture.
The company has obtained C$5.25 million of financing earmarked for the completion of the Gen 3 Purevap pilot equipment project announced in August 2016, according to an announcement.
The Quebec government is investing in the debenture through its Creativite Quebec program via Investissement Quebec (IQ), the release noted.
The debenture is convertible at any time into common shares of HPQ at a price of C$0.12 per share, which is a 33.33% premium to the company’s closing price last Friday.
The debenture may be repaid 36 months after the issue with the payment of a redemption premium equal to a compounded annual return of 20% on the capital of the debenture, the release noted.
IQ will receive 15 million warrants, each exercisable at C$0.17 each for 36 months from the close.
Meanwhile, PyroGenesis also has closed a private placement in HPQ of 16.25 million units at C$0.12 per unit for proceeds of up to C$1.95 million. Each unit consists of one common share and one purchase warrant with each warrant exercisable at C$0.17 for 36 months from closing.
Upon approval from the TSX venture exchange, PyroGenesis will grant HPQ an equity line of credit of C$1.5 million, which can only be used to cover unexpected project cost overruns that could potentially occur after then end of the planned test period in 2019 until Dec. 31, 2020.
HPQ said it has already received conditional approval from the TSX Venture exchange for the issue of the C$1.8 million convertible debenture and associated warrants and for the C$1.95 million private placement. Only the equity line of credit requires exchange approval.
The company’s stock price (Canada: HPQ) closed at C$0.09 last Friday.
HPQ is a resource company based in Montreal planning to become a vertically integrated and diversified high-purity solar-grade silicon metal producer and a manufacturer of multi and monocrystalline solar cells of the P and N types, required for production of high performance photovoltaic conversion.
| Issuer: | HPQ Silicon Resources Inc.
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| Announcement date: | Aug. 13
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| Stock ticker: | Canada: HPQ
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| Stock price: | C$0.09 at close on Aug. 10
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|
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| Convertible debenture
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| Amount: | C$1.8 million
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| Issue: | Unsecured convertible debenture
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| Maturity: | Five years
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| Coupon: | 5%
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| Conversion price: | C$0.12
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| Investor: | Quebec government, Investissement Quebec
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|
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| Private placement
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| Amount: | C$1.95 million
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| Issue: | Unit consists of one common share and one warrant
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| Units: | 16.25 million
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| Warrant strike price: | C$0.17
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| Warrant expiration: | 36 months
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| Investor: | PyroGenesis
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