Offerings, brokered by Canaccord Genuity, to fund debt reorganization
By Devika Patel
Knoxville, Tenn., Dec. 3 - Russell Breweries Inc. said it completed the second tranche of a private placement of two-year 10% convertible debentures and units. The C$2 million offering priced as a non-brokered deal on Oct. 6 and was revised to a brokered placement on Oct. 26. Russell raised C$1.36 million on Nov. 4 and C$224,200 in this tranche.
The company is selling C$1 million of debentures; it issued C$531,000 of debentures in the first tranche and C$158,000 of debentures in the second. The debentures will be convertible into common shares at C$0.15 per share until Nov. 4, 2012. The conversion price is an 87.5% premium to C$0.08, the closing share price on Oct. 5.
The company is also conducting a private placement of units at C$0.08 per unit for additional proceeds of C$1 million. It sold 10,402,500 units for C$832,200 in the initial tranche and 827,500 units for C$66,200 in the second.
Each unit consists of one common share and one warrant, with each warrant exercisable at C$0.15 for two years, also an 87.5% premium to the Oct. 5 price.
Canaccord Genuity Corp., the agent, has a C$500,000 greenshoe, which may be raised through debentures or units.
Proceeds will be used to reorganize long term debt, to enhance marketing efforts and for general working capital requirements.
Russell is a brewing company based in Vancouver, B.C.
| Issuer: | Russell Breweries Inc.
|
| Issue: | Convertible debentures, units of one common share and one warrant
|
| Amount: | C$2 million
|
| Greenshoe: | C$500,000
|
| Agent: | Canaccord Genuity Corp.
|
| Pricing date: | Oct. 6
|
| Amended: | Oct. 26
|
| Settlement date: | Nov. 4 (for C$1,363,200), Dec. 3 (for C$224,200)
|
| Stock symbol: | TSX Venture: RB
|
| Stock price: | C$0.08 at close Oct. 5
|
| Market capitalization: | C$2.5 million
|
|
|
| Debentures
|
| Amount: | C$1 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.15
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$1 million
|
| Price: | C$0.08
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
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