Offering proceeds to fund acquisition of Kinsella Crude Oil Terminal
By Devika Patel
Knoxville, Tenn., Oct. 31 - Cancen Oil Canada Inc. said it raised C$741,000 in the third and final tranche of its C$7.93 million private placement of units and debentures on Oct. 30. The best-efforts deal priced for C$20 million on July 4 and was amended on July 18. The company raised C$2.96 million on Aug. 2 and a further C$4.22 million on Aug. 30.
The company sold 7,338 of its 12% convertible unsecured subordinated debentures due July 31, 2016, The maturity was originally July 31, 2017.
Each debenture has a face value of C$1,000 and will be convertible into common shares at C$1.00 per common share, which was increased from the original C$0.85 conversion price. The conversion price is a 66.67% premium to the closing share price of C$0.60 on July 4.
The company may redeem the debentures on or after July 31, 2015 and may prepay them through the issuance and sale of additional common shares.
The company also sold 978,000 units at C$0.60 per unit. Each unit consists of one common share and one warrant. Each warrant is exercisable at C$0.85 for two years. The strike price is a 41.67% premium to the July 4 closing share price.
The first tranche consisted of 2,960 debentures. The second tranche consisted of 3,688 debentures for C$3.69 million and 893,000 units for C$535,800. In the third tranche, the company issued 690 debentures for C$690,000 and 85,000 units for C$51,000.
The offering was conducted by a syndicate of agents led by Stonecap Securities Inc. and including Wolverton Securities Ltd. Macquarie Private Wealth Inc. will also assist.
Proceeds will be used to fund the acquisition of the Kinsella Crude Oil Terminal and Blending Facility from Astra Energy Canada Inc. and for the company's 2012 capital expenditure program and general working capital.
Edmonton, Alta.-based Cancen provides specialized energy services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin.
| Issuer: | Cancen Oil Canada Inc.
|
| Issue: | Convertible unsecured subordinated debentures, units
|
| Amount: | C$7,924,800
|
| Agents: | Stonecap Securities Inc. (lead), Wolverton Securities Ltd., Macquarie Private Wealth Inc.
|
| Pricing date: | July 4
|
| Amended: | July 18
|
| Settlement date: | Aug. 3 (for C$2.96 million), Aug. 30 (for C$4,223,800), Oct. 30 (for C$741,000)
|
| Stock symbol: | Toronto: COI
|
| Stock price: | C$0.60 at close July 4
|
| Market capitalization: | C$29.8 million
|
|
|
| Debentures
|
| Amount: | C$7,338,000
|
| Debentures: | 7,338
|
| Maturity: | July 31, 2016
|
| Price: | Par of C$1,000
|
| Coupon: | 12%
|
| Conversion price: | C$1.00
|
| Call: | Yes
|
|
|
| Units:
|
| Amount: | C$586,800
|
| Units: | 978,000
|
| Price: | C$0.60
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.85
|
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