By Laura Lutz
Des Moines, July 19 - Eloda Corp. announced private placements of debentures and shares for a total of C$5.657 million.
The company raised C$4.407 million from the first tranche of a C$4.657 million private placement of unsecured convertible debentures and C$1 million from a private placement of shares.
Eloda said in a news release that it has received commitments for the remaining C$250,000 of debentures.
The three-year debentures bear interest at 12% per year, payable in units priced at the weighted average of the daily averages of the highest and lowest market price of the company's shares for their last 20 active trading days before interest is calculated.
The debentures are convertible into units at any time at C$0.37 per unit in the first two years and at C$0.41 per unit thereafter.
Each unit will consist of one share and one half-share warrant. Each whole warrant will be exercisable for two years at the then-current conversion price.
In the share placement, Eloda sold 3,333,334 shares at C$0.30 each. That deal was brokered.
The company also issued 166,666 shares to settle a C$50,000 debt.
Montreal-based Eloda provides measurement and validation tools for the advertising industry.
It will use the proceeds of both offerings to hire and deploy a sales force in the United States, to fund research and development of new media, to pay outstanding debt and to fund working capital.
Convertible debentures
| Issuer: | Eloda Corp.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$4.657 million
|
| Maturity: | Three years
|
| Coupon: | 12%, payable in units of one share and one half-share warrant
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | C$0.37 for first two years; C$0.41 thereafter
|
| Warrants: | One half-share warrant per unit upon conversion or interest payment
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.37 for first two years of debentures; C$0.41 thereafter
|
| Announcement date: | July 19
|
| Settlement date: | July 19 (for C$4.407 million)
|
| Stock symbol: | TSX Venture: ELA
|
| Stock price: | C$0.305 at close July 19
|
|
|
| Shares
|
| Issuer: | Eloda Corp.
|
| Issue: | Shares
|
| Amount: | C$1 million
|
| Shares: | 3,333,334
|
| Price: | C$0.30
|
| Warrants: | No
|
| Settlement date: | July 19
|
| Stock symbol: | TSX Venture: ELA
|
| Stock price: | C$0.305 at close July 19
|
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