By Laura Lutz
Washington, Jan. 31 - KidsFutures Inc. raised C$3.6 million from the first tranche of its previously announced private placement for up to C$7 million.
The company sold 30,094,373 units of one share and one half-share warrant at C$0.12 per unit. Each whole warrant is exercisable at C$0.20 for 18 months.
As previously reported, the full placement was expected to include up to C$5 million of units. The remainder of the placement will consist of 10% convertible debentures.
The convertible debentures will be convertible at C$0.20 per share during the first two years and at C$0.25 in the third year.
Investors will receive 833 warrants for every $1,000 principal amount of debentures. Each warrant will be exercisable at C$0.30 for two years.
Expiry of the warrants associated with the debentures may be accelerated to 30 days if the weighted average trading price of the company's shares is at least C$0.40 for 30 consecutive trading days.
Wellington West Capital Markets is the lead agent.
Based in Toronto, KidsFutures operates the Futura Rewards Program, which helps families save for financial goals. Proceeds of the placement will be used to implement the company's grocery and pharmacy programs and redeem some or all of its outstanding series 2 class C preference shares.
| Issuer: | KidsFutures Inc.
|
| Issue: | Units of one share and one half-share warrant and convertible debentures
|
| Amount: | C$7 million
|
| Agent: | Wellington West Capital Markets
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| Pricing date: | Nov. 28 (for convertible debentures); Jan. 24 (for units)
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| Settlement date: | Jan. 31 (for C$3.6 million of units)
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| Stock symbol: | TSX Venture: FUT
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| Stock price: | C$0.11 at close Nov. 27
|
| Stock price: | C$0.12 at close Jan. 23
|
| Stock price: | C$0.11 at close Jan. 31
|
|
|
| Units
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| Amount: | C$5 million (maximum)
|
| Price: | C$0.12
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.20
|
|
|
| Debentures
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| Amount: | C$6 million (maximum)
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| Maturity: | Three years
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Conversion price: | C$0.20 in the first two years; C$0.25 in the third year
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| Warrants: | For 833 shares per C$1,000 principal amount
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$0.30
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