By Devika Patel
Knoxville, Tenn., Dec. 24 - Etruscan Resources Inc. said it settled a $5 million debt financing by issuing senior unsecured convertible promissory notes to Conus Partners Inc.
The 7% notes may be converted into common shares at $1.00 per share at any time after June 30, 2010. They are due Dec. 24, 2010.
The notes may be prepaid at any time without penalty or premium.
As part of the financing, the investors will receive two tranches of warrants. A total of $2.5 million of A warrants were issued on closing.
Each A warrant is exercisable at $0.2915 until Dec. 24, 2013.
If the notes have not been repaid in the first year, the investors will receive a second tranche of B warrants equal to 50% of any principal and interest outstanding on the notes at that time divided by the five day volume-weighted average trading price of the company's common shares immediately prior to the first anniversary of the notes.
Each B warrant is exercisable at a price equal to the first anniversary volume-weighted average trading price for five years.
Proceeds will be used for general working capital purposes.
Etruscan, based in Windsor, N.S., is a gold exploration and development company.
| Issuer: | Etruscan Resources Inc.
|
| Issue: | Senior unsecured convertible promissory notes
|
| Amount: | $5 million
|
| Maturity: | Dec. 24, 2010
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $1.00
|
| Warrants: | Yes
|
| Warrant expiration: | Dec. 24, 2013 (A warrants), five years (B warrants)
|
| Warrant strike price: | $0.2915 (A warrants), first anniversary volume-weighted average trading price (B warrants)
|
| Investor: | Conus Partners Inc.
|
| Settlement date: | Dec. 24
|
| Stock symbol: | Toronto: EET
|
| Stock price: | C$0.32 at close Dec. 24
|
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