Company offers 12% unsecured convertible debentures due Aug. 31, 2017
By Devika Patel
Knoxville, Tenn., Dec. 3 - Extenway Solutions Inc. said it took in C$3 million in the first tranche of a private placement of 12% unsecured convertible debentures. A fund committed to invest C$1.5 million and another investor committed C$500,000 in the deal, which priced for between C$3 million and C$6 million on Oct. 15.
The convertible debentures mature on Aug. 31, 2017, and may be converted into common shares at C$0.13 until April 29, 2016 and at C$0.17 after April 29, 2016. The strike prices are 333.33% and 466.67% premiums to the Oct. 12 closing share price of C$0.03.
The company says it is in discussions to negotiate future tranches.
Proceeds will be used for working capital.
Montreal-based Extenway provides services to the hospitality industry.
| Issuer: | Extenway Solutions Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$6 million (maximum)
|
| Maturity: | Aug. 31, 2017
|
| Coupon: | 12%
|
| Conversion price: | C$0.13 until April 29, 2016, C$0.17 after April 29, 2016
|
| Warrants: | No
|
| Pricing date: | Oct. 15
|
| Settlement date: | Nov. 30 (for C$3 million)
|
| Stock symbol: | TSX Venture: EY
|
| Stock price: | C$0.03 at close Oct. 12
|
| Market capitalization: | C$16.04 million
|
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