Deal offers units of C$10,000 of three-year promissory notes, warrants
By Devika Patel
Knoxville, Tenn., March 4 - Liquidation World Inc. said it settled the second and final tranche of a private placement of 11% junior secured subordinated promissory notes. The deal priced for C$7 million on Jan. 28 and the company raised C$5.95 million in the first tranche of the deal on March 1; it raised C$2.15 million in the latest tranche for a total of C$8.1 million.
The company sold 595 units at C$1,000.00 apiece in the first closing and 215 units at that price in the second tranche.
Each unit consists of C$10,000 of three-year junior secured subordinated promissory notes and 8,000 warrants, which are each exercisable at C$0.64 for five years. The strike price reflects a 1.59% premium to the Feb. 28 closing share price of C$0.63.
The notes may be prepaid in year one at 110; in years two and three they may be prepaid at par.
Liquidation World is a Calgary, Alta.-based retail chain.
| Issuer: | Liquidation World Inc.
|
| Issue: | Units of C$10,000 of three-year junior secured subordinated promissory notes and 8,000 warrants
|
| Amount: | C$8.1 million
|
| Units: | 810
|
| Maturity: | Three years
|
| Coupon: | 11%
|
| Price: | Par of C$10,000
|
| Call: | At 110 in year one; par in years two and three
|
| Warrants: | 8,000 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.64
|
| Pricing date: | Jan. 28
|
| Settlement date: | March 1 (for C$5.95 million), March 4 (for C$2.15 million)
|
| Stock symbol: | Toronto: LQW
|
| Stock price: | C$0.63 at close Jan. 27
|
| Market capitalization: | C$18.22 million
|
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