Proceeds from three-year securities to develop oil and gas properties
By Devika Patel
Knoxville, Tenn., Oct. 12 - 49 North Resources Inc. said it completed a private placement of convertible debentures. It raised C$2.36 million on Sept. 24 and C$4.69 million total.
The 8% three-year debentures are convertible into shares at C$4.00 per share if converted prior to Sept. 23, 2011; C$4.25 per share if converted on or after Sept. 23, 2011 and before Sept. 23, 2012; and C$4.50 per share if converted on or after Sept. 23, 2012.
The strike prices reflect 128.57%, 142.86% and 157.14% premiums to the Sept. 22 closing share price of C$1.75.
The debentures may be redeemed early if the company pays a premium on the principal of 6% if redeemed prior to Sept. 23, 2011; 4% if redeemed on or after Sept. 23, 2011 but before Sept. 23, 2012; or 2% if redeemed on or after Sept. 23, 2012.
MGI Securities Inc., Canaccord Genuity Corp. and Wellington West Capital Inc. were the agents.
Proceeds will be used to develop the Viking light oil and gas properties held by 49 North's subsidiary, Allstar Energy Ltd., and to acquire an oil and natural gas processing facility.
Saskatoon, Sask., 49 North is a resource investment, financial and managerial advisory, and merchant banking company.
| Issuer: | 49 North Resources Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$4,690,800
|
| Maturity: | Sept. 23, 2013
|
| Coupon: | 8%
|
| Conversion price: | C$4.00 if converted prior to Sept. 23, 2011; C$4.25 if converted on or after Sept. 23, 2011 and before Sept. 23, 2012; and C$4.50 if converted on or after Sept. 23, 2012
|
| Call: | Yes
|
| Warrants: | No
|
| Agents: | MGI Securities Inc., Canaccord Genuity Corp. and Wellington West Capital Inc.
|
| Settlement date: | Sept. 23 (for C$2.36 million), Oct. 12
|
| Stock symbol: | TSX Venture: FNR
|
| Stock price: | C$1.77 at close Sept. 23
|
| Market capitalization: | C$22.12 million
|
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