Deal funds debt repayment, business plan and general working capital
By Devika Patel
Knoxville, Tenn., Nov. 24 – Huldra Silver Inc. said it raised C$1 million in the first tranche of a C$7 million private placement of secured convertible debentures. The deal priced for between C$5 million and C$8 million on Oct. 6.
The convertible debentures mature in three years, with the first-tranche convertibles maturing on Nov. 21, 2017, and accrue interest at 10%, which will be paid half in cash and half in common shares. The debenture may be converted into common shares at C$0.055 per share, which is a 21.43% discount to the Oct. 3 closing share price of C$0.07.
Investors will also receive 5,000 warrants per C$1,000 of debentures. Each four-year warrant is exercisable at C$0.075 in the first year and at C$0.10 in the last three years. The strike prices are respective 7.14% and 42.86% premiums to the Oct. 3 closing price. Investors in the initial tranche received 35,004,410 warrants.
Proceeds will be used for debt repayment, the company’s post-restructuring business plan and general working capital purposes.
Vancouver, B.C.-based Huldra explores and develops silver deposits.
| Issuer: | Huldra Silver Inc.
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| Issue: | Secured convertible debentures
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| Amount: | C$8 million
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| Maturity: | Nov. 21, 2017 (for first tranche)
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| Coupon: | 10%
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| Conversion price: | C$0.055
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| Warrants: | 5,000 warrants per C$1,000 of debentures
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| Warrant expiration: | Four years
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| Warrant strike price: | C$0.075 in the first year, C$0.10 in the last three years
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| Agent: | Non-brokered
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| Pricing date: | Oct. 6
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| Settlement date: | Nov. 24 (for C$7,000,882)
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| Stock symbol: | TSX Venture: HDA
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| Stock price: | C$0.07 at close Oct. 3
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| Market capitalization: | C$1.39 million
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