Venture capital company also secures royalty agreement with Wellness
By Devika Patel
Knoxville, Tenn., June 15 - Essex Angel Capital Inc. said it plans a C$1 million non-brokered private placement of five-year unsecured convertible debentures. The company also said it negotiated a royalty agreement with Wellness Indicators, Inc., under which the company will earn up to 2% of Wellness' quarterly gross sales in each quarter.
The debentures accrue interest at a rate equal to 50% of the royalty interest and convert to common stock at a conversion price of C$0.10, which is an 11.11% premium to C$0.09, the June 14 closing share price.
Settlement is expected July 31.
Proceeds will be used to acquire between $100,000 and $1 million of Wellness Indicators, Inc. 6% secured convertible debentures, which are being issued as part of the royalty agreement between the companies, and for general working capital.
The venture capital company is based in Windsor, Ont.
| Issuer: | Essex Angel Capital Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$1 million
|
| Maturity: | Five years
|
| Coupon: | 50% of the royalty
|
| Conversion price: | C$0.10
|
| Conversion premium: | 11.11%
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | June 15
|
| Settlement date: | July 31
|
| Stock symbol: | TSX Venture: EXC
|
| Stock price: | C$0.09 at close April 27
|
| Market capitalization: | C$2.67 million
|
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