By Sheri Kasprzak
Atlanta, April 27 - Creation Casinos Inc. said it plans to raise C$3.04 million in a non-brokered private placement of units.
The company will sell up to 3.2 million units at C$0.95 each.
The units are comprised of one share and one half-share warrant. The whole warrants allow for an additional share at C$1.25 each for one year.
Creation said it has reached an agreement with Great Canadian Gaming Corp. to convert certain debt and capital lease obligations into preferred stock. Great Canadian currently holds a loan for C$6,804,492 with accrued interest of C$110,669 against Creation. Great Canadian also holds a capital lease obligation of the company for C$540,000.
The preferreds into which the debt and lease obligations will be converted have a stated value of C$100.00 per share, are non-voting and pay an annual dividend of C$3.00 per share.
To facilitate the agreement, Creation was required to raise a minimum of C$2 million in an equity financing.
Based in Vancouver, B.C., Creation operates a casino in Lithuania. The company plans to use the proceeds for working capital.
Issuer: | Creation Casinos Inc.
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Issue: | Units of one share and one half-share warrant
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Amount: | C$3.04 million (maximum)
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Units: | 3.2 million (maximum)
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Price: | C$0.95
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Warrants: | One half-share warrant per unit
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Warrant expiration: | One year
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Warrant strike price: | C$1.25
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Pricing date: | April 27
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Stock price: | C$1.18 at close April 26
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