Prophecy DeFi to offer C$25 million 10% convertible debentures

Chicago, Nov. 15 – Prophecy DeFi Inc. is offering C$25 million 10% three-year convertible debentures at par via a brokered private placement, according to a press release.

The debentures will be convertible at the option of the issuer at any point into common shares of the company at a C$1.00 conversion price per common share.

The company will have the right to force conversion if the trading price of the stock on the Canadian Securities Exchange is greater than C$1.50 for 10 consecutive days.

If there is a change of control, the company would offer to purchase the debentures at 105 plus unpaid interest.

Canaccord Genuity Corp. is the lead agent. The other part of the syndicate includes Infor Financial Inc.

Until 48 hours before the offer closes, the agents have the option to increase the size of the offer by an additional $3.75 million of debentures.

The agents are receiving 5% of the gross proceeds of the offer and warrants good for 36 months. The warrants will be equal to 5% of the gross proceeds of the offer divided by the conversion price. There will also be a corporate finance fee equal to 2.5% of the number of debentures issued.

Closing is expected for Dec. 7.

The debentures, including the common shares issued through conversion, will be subject to a four-month hold from the closing date.

Proceeds will be used for Layer2 Blockchain’s liquidity mining operations and for general working capital purposes.

Prophecy DeFi launched in June. Based in Toronto, the company unites technology start-ups in the blockchain and DeFi sectors. It provides bridge loans and equity financing.

© 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.