12% convertibles are due in three years, convert at C$0.10 per share
By Devika Patel
Knoxville, Tenn., June 8 - Altima Resources Ltd. said it has negotiated a C$15 million private placement of convertible debentures. VSA Capital Ltd. is arranging the sale, which includes the conversion of C$3 million of debt into debentures.
The convertibles mature on June 30, 2015 and accrue interest at 12% per year. They may be converted into common shares at C$0.10 per share, a 100% premium to the June 7 closing share price of C$0.05.
The debentures may be prepaid, and the company may force conversion.
Proceeds will be used for drilling and development of oil and gas wells on the company's assets.
Based in Vancouver, B.C., Altima is an oil and gas exploration company.
| Issuer: | Altima Resources Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$15 million
|
| Maturity: | June 30, 2015
|
| Coupon: | 12%
|
| Conversion price: | C$0.10
|
| Conversion premium: | 100%
|
| Call: | Yes
|
| Warrants: | No
|
| Agent: | VSA Capital Ltd.
|
| Pricing date: | June 8
|
| Stock symbol: | TSX Venture: ARH
|
| Stock price: | C$0.05 at close June 7
|
| Market capitalization: | C$14.77 million
|
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