Lone investor also will receive warrants for 17,142,857 common shares
By Devika Patel
Knoxville, Tenn., Oct. 9 – 3MV Energy Corp. said it negotiated a C$10 million secured loan facility with Invico Diversified Income LP. The deal will settle in two equal tranches of C$5 million each.
The loan is due in two years.
Invico also will receive warrants for 17,142,857 common shares. Of the warrants, 10 million will be issued in the first tranche and are exercisable at C$0.25. The remaining 7,142,857 warrants will be issued in the second tranche and are exercisable at C$0.35. The strike prices are respective 66.67% and 133.33% premiums to the Oct. 8 closing share price of C$0.15.
Settlement of the first tranche is expected on Nov. 1, and the second tranche is expected to settle on Feb. 28.
The oil and gas exploration and development company is based in Calgary, Alta.
| Issuer: | 3MV Energy Corp.
|
| Issue: | Secured loan facility
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| Amount: | C$10 million
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| Maturity: | Two years
|
| Warrants: | For 17,142,857 shares
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| Warrant strike price: | C$0.25 (for 10 million warrants), C$0.00 (for 7,142,857 warrants)
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| Investor: | Invico Diversified Income LP
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| Pricing date: | Oct. 9
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| Settlement date: | Nov. 1 (for C$5 million), Feb. 28 (for C$5 million)
|
| Stock symbol: | TSX Venture: TMV
|
| Stock price: | C$0.15 at close Oct. 8
|
| Market capitalization: | C$7.43 million
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