By Sheri Kasprzak
New York, Dec. 20 - Environmental Management Solutions Inc. said it has completed a private placement of units for C$20 million.
The company will sell to Oncap II, LP units made up of 95% convertible debentures and 5% convertible preferred stock.
The units bear interest at 5% quarterly in cash.
The debentures have an eight-year term and are convertible into common shares at C$0.323 each.
About 10 million preferreds will be issued and carry one vote per share. The preferreds are also convertible into common shares at C$0.323 each.
Proceeds from the deal will be used to repay existing debt, finance growth initiatives and pay for a litigation settlement between the company and its former chief executive officer, Frank D'Addario, and his related parties.
Based in Burlington, Ont., Environmental Management provides organic waste and contaminated soil disposal and reuse services.
| Issuer: | Environmental Management Solutions Inc.
|
| Issue: | Units of 95% convertible debentures and 5% convertible preferred stock
|
| Amount: | C$20 million
|
| Maturity: | Eight years (for debentures)
|
| Coupon: | 5% quarterly in cash
|
| Shares: | 10 million (preferreds)
|
| Conversion price: | C$0.323
|
| Warrants: | No
|
| Investor: | Oncap II, LP
|
| Announcement date: | Dec. 20
|
| Stock price: | C$0.46 at close Dec. 19
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
