By Laura Lutz
Washington, Nov. 28 - KidsFutures Inc. announced that it will conduct a private placement of convertible debentures for up to C$6 million.
The 10%, three-year debentures will be convertible at C$0.20 per share during the first two years and C$0.25 in the third year.
Investors will also 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 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 will act as lead agent for the deal.
Based in Toronto, KidsFutures operates the Futura Rewards Program, which helps families save for financial goals. Proceeds of the placement will be used to launch the company's grocery and pharmacy programs and for marketing and operating costs.
| Issuer: | KidsFutures Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$6 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.20 in the first two years; C$0.25 in the third year
|
| Warrants: | For 833 shares per C$1,000 principal amount
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Wellington West Capital Markets (lead)
|
| Pricing date: | Nov. 28
|
| Stock symbol: | TSX Venture: FUT
|
| Stock price: | C$0.11 at close Nov. 27
|
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