By Devika Patel
Knoxville, Tenn., July 11 -The agent for 49 North Resources Inc.'s 8% three-year convertible subordinated debentures exercised its over-allotment option in full and completed the second closing of the offering, raising an additional C$1.62 million and increasing the size of the issue to C$11.5 million, the company said in a news release.
The company priced the debentures through a short-form prospectus on May 27 via agent MGI Securities Inc. The offering priced for between C$2 million and C$10 million, and the company initially raised C$9.89 million on June 29.
The debentures, which mature June 29, 2014, will be convertible at a conversion price of C$4.50 per common share, which equals a conversion premium of 28.21% to the May 26 closing share price of C$3.51.
The securities are callable at any time with a premium of 6% if redeemed in the first year, 4% if redeemed in the second year and 2% if redeemed in the third year or beyond.
Proceeds will be used to retire the company's debentures issued July 24, 2008, for oil and gas drilling, to expand the company's investing activities and for general corporate purposes.
Based in Saskatoon, Sask., 49 North is a resource investment, financial and managerial advisory, and merchant banking company.
| Issuer: | 49 North Resources Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$11.5 million (including C$1.5 million greenshoe)
|
| Maturity: | June 29, 2014
|
| Coupon: | 8%
|
| Conversion premium: | 28.21%
|
| Conversion price: | C$4.50
|
| Calls: | Yes
|
| Agents: | MGI Securities Inc.
|
| Pricing date: | May 27
|
| Settlement dates: | June 29 (for C$9,885,400), July 11 (for C$1,614,600)
|
| Stock symbol: | TSX Venture: FNR
|
| Stock price: | C$3.51 at close May 26
|
| Market capitalization: | C$50.57 million
|
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