Offering garners commitments from Difference Capital, Zolt-Gilburne
By Devika Patel
Knoxville, Tenn., April 23 - ePals Corp. said it raised $2 million in the second tranche of a $10 million non-brokered private placement of senior secured convertible debentures. The deal priced on March 13 and raised $3 million on March 21.
The convertible debentures initially mature on Oct. 31, 2014, which may be extended to Oct. 31, 2016. The securities accrue interest at 10% per year. The debentures may be converted into common shares at $0.40 per share, a 233.33% premium to the March 12 closing share price of $0.12.
After Oct. 31, 2014, the company may force conversion. It may redeem the debentures after Oct. 31, 2015.
Difference Capital Funding Inc. and Zolt-Gilburne 2012 Family Trust were the investors for the initial tranche and have committed to invest up to $7.5 million.
Settlement of the final tranche is expected April 29.
Proceeds will be used for general corporate purposes and working capital.
The education media company is based in Washington, D.C.
| Issuer: | ePals Corp.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $10 million
|
| Maturity: | Oct. 31, 2014 (initial, extendable to Oct. 31, 2016)
|
| Coupon: | 10%
|
| Conversion price: | $0.40
|
| Conversion premium: | 233.33%
|
| Call: | After Oct. 31, 2014
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investors: | Difference Capital Funding Inc. and Zolt-Gilburne 2012 Family Trust (for up to $7.5 million)
|
| Pricing date: | March 13
|
| Settlement dates: | March 21 (for $3 million), April 23 (for $2 million), April 29
|
| Stock symbol: | OTCBB: EPCPF
|
| Stock price: | $0.12 at close March 12
|
| Market capitalization: | $21.42 million
|
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