By Devika Patel
Knoxville, Tenn., April 6 - Malaga Inc. said it settled the first tranche of a $3.8 million private placement of five-year senior secured convertible promissory notes, raising $1.3 million. Global Tungsten & Powders Corp. was the investor.
The notes will be sold in four tranches over the next four months. They have a coupon equal to 12-month Libor with an interest-free period for the first year.
The notes will be convertible into shares at a price equal to 85% of the volume-weighted average trading price of the company's common shares for the 10 trading days immediately preceding the date of the conversion notice.
Proceeds will be used to purchase machinery and equipment.
Based in Montreal, Malaga is a tungsten mining company.
Issuer: | Malaga Inc.
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Issue: | Senior secured convertible promissory notes
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Amount: | $3.8 million
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Maturity: | Five years
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Coupon: | 12-month Libor
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Price: | Par
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Yield: | 12-month Libor
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Conversion price: | 85% of the volume-weighted average trading price of the company's common shares
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Warrants: | No
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Investor: | Global Tungsten & Powders Corp.
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Pricing date: | April 6
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Settlement date: | April 6 (for $1.3 million)
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Stock symbol: | Pink Sheets: MLGAF
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Stock price: | $0.1102 at close April 3
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