Non-brokered deal funds $3 million to Buda Juice, aids working capital
By Devika Patel
Knoxville, Tenn., June 15– AIS Resources Ltd. said it decreased the per-unit price and warrant strike price in its C$6 million non-brokered private placement of units. The deal was announced on Jan. 8 and priced on May 20.
The company will now sell 60 million units of one common share and one warrant at C$0.10 per unit. It previously planned to sell 24 million units at C$0.25 apiece.
Each two-year warrant is now exercisable at C$0.14, decreased from C$0.40. The strike price reflects a 26.32% discount to the May 19 and June 12 closing share prices of C$0.19.
Proceeds will be used to invest in Buda Juice, LLC and for working capital.
As previously reported, AIS signed a term sheet on Dec. 23 allowing it to buy up to one-third of Buda for $3 million. Buda will also give AIS first rights to all future financings and first rights to franchise Buda in Canada.
Buda, a retail juice company in Dallas, will use the investment for expansion in Dallas and other cities in the United States.
The Vancouver, B.C., company makes equity investments in marketable securities and financial instruments.
| Issuer: | AIS Resources Ltd.
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| Issue: | Units of one common share and one warrant
|
| Amount: | C$6 million
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| Units: | 60 million
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| Price: | C$0.10
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| Warrants: | One warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.14
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| Agent: | Non-brokered
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| Announcement date: | Jan. 8
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| Pricing date: | May 20
|
| Revised: | June 15
|
| Stock symbol: | TSX Venture: AIS
|
| Stock price: | C$0.19 at close May 19 and June 12
|
| Market capitalization: | C$761,280
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