Tranche settles; proceeds allocated to subsdiary's Viking properties
By Devika Patel
Knoxville, Tenn., Sept. 24 - 49 North Resources Inc. said it took in C$2.36 million through a private placement of convertible debentures on Thursday. It expects a second and final tranche in October.
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 conversion 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. are 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 acquire an oil and natural gas processing facility.
Saskatoon, Saskatchewan-based 49 North is a resource investment company with operations in financial, managerial and geological advisory services and merchant banking.
| Issuer: | 49 North Resources Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$2.36 million
|
| Maturity: | Sept. 23, 2013
|
| Coupon: | 8%
|
| Conversion price: | C$4.00 in year one, C$4.25 in year two, C$4.50 in year three
|
| Call option: | At 106% of par in year one, at 104% in year two, at 102% in year three
|
| Warrants: | No
|
| Agents: | MGI Securities Inc., Canaccord Genuity Corp. and Wellington West Capital Inc.
|
| Settlement date: | Sept. 23
|
| Stock symbol: | TSX Venture: FNR
|
| Stock price: | C$1.77 at close Sept. 23
|
| Market capitalization: | C$22.25 million
|
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