By Sheri Kasprzak
New York, April 7 - Lyrtech Inc. said it intends to raise up to C$6.5 million and at least C$4 million in a private placement as part of its plans to acquire Innovator Electronic Assembly.
The offering includes up to 36,111,111 units and at least 22,222,222 units at C$0.18 each.
The units consist of one share and one warrant. Each warrant is exercisable at C$0.30 for four years.
The company also intends to issue a C$2 million non-convertible debenture. The debenture matures in five years and bears interest at 10.9% annually.
The investors in the debenture will also receive warrants for 11 million shares, exercisable at C$0.30 each for two years.
Dundee Securities Corp. is the placement agent for the private placement.
The unit and debenture offerings are scheduled to close April 13.
Also, Lyrtech plans to enter into a banking facility with a Canadian chartered bank for at least C$9.5 million in credit lines and term loans.
The acquisition of Innovator Electronic Assembly is expected to cost C$5.4 million with C$3.6 million payable in cash and the remainder payable in shares at C$0.18 each.
Lyrtech, based in Quebec City, is a digital signal processing technology company. Its technologies are used in network and wireless applications.
Units
| Issuer: | Lyrtech Inc.
|
| Issue: | Units of one share and one warrant
|
| Amount: | C$6.5 million (maximum); C$4 million
|
| Units: | 36,111,111 (maximum); 22,222,222 (minimum)
|
| Price: | C$0.18
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Four years
|
| Warrant strike price: | C$0.30
|
| Placement agent: | Dundee Securities Corp.
|
| Announcement date: | April 7
|
| Settlement date: | April 13
|
| Stock symbol: | TSX Venture: LYT
|
| Stock price: | C$0.285 at close April 6
|
|
|
| Debentures
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| Issuer: | Lyrtech Inc.
|
| Issue: | Non-convertible debentures
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| Amount: | C$2 million
|
| Maturity: | Five years
|
| Coupon: | 10.9%
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| Price: | Par
|
| Yield: | 10.9%
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| Warrants: | For 11 million shares
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.30
|
| Placement agent: | Dundee Securities Corp.
|
| Announcement date: | April 7
|
| Settlement date: | April 13
|
| Stock symbol: | TSX Venture: LYT
|
| Stock price: | C$0.285 at close April 6
|
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