By Sheri Kasprzak
New York, Nov. 21 - Mart Resources, Inc. concluded its previously announced private placement of secured and unsecured convertible promissory notes for C$18,375,000.
The company sold C$9.5 million in unsecured convertible notes and C$8.875 million in secured notes.
The 8% notes are due Nov. 20, 2008.
The unsecured notes are convertible into units of one share and one warrant at C$0.66 each through Nov. 20, 2007 and at C$0.75 each after Nov. 20, 2007 through maturity. Each warrant associated with the units is exercisable at C$0.66 each for the first year and at C$0.75 for the second year.
The secured notes are also convertible into units at the same prices. The units include one share and one half-share warrant. Each whole warrant is exercisable at C$0.79 each for the first year and at C$0.90 each for the second year.
The deal priced Oct. 24 as a C$17.75 million offering of C$8.875 million in secured and unsecured notes each.
Mart may reduce the conversion price of the notes if it conducts a private placement with an issue price 20% above the market price at the time of the placement. Mart may also force conversion of the notes if its stock trades above C$1.05 for more than 30 consecutive trading days.
Proceeds will be used for the repayment of C$8,875,000 in existing convertible notes. The rest will be used for drilling and testing wells on the Umusadege oil field and the Qua Ibo oil field in Nigeria, as well as for working capital.
Calgary, Alta.-based Mart is an oil and natural gas exploration company.
| Issuer: | Mart Resources, Inc.
|
| Issue: | Secured and unsecured convertible promissory notes
|
| Amount: | C$18.375 million
|
| Maturity: | Nov. 20, 2008
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$9.5 million in unsecured notes convertible into units of one share and one warrant at C$0.66 each through Nov. 20, 2007 and at C$0.75 each after Nov. 20, 2007 through maturity; C$8.875 million in secured notes convertible into units of one share and one half-share warrant at C$0.66 each through Nov. 20, 2007 and at C$0.75 each after Nov. 20, 2007 through maturity
|
| Call: | May force conversion if stock trades above C$1.05 for more than 30 consecutive trading days
|
| Warrants: | One warrant per unit upon conversion of unsecured notes; one half-share warrant per unit upon conversion of secured notes
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.66 for the first year, C$0.75 for the second for unsecured notes; C$0.79 for the first year and C$0.90 for the second year for secured notes
|
| Pricing date: | Oct. 24
|
| Settlement date: | Nov. 21
|
| Stock symbol: | TSX Venture: MMT
|
| Stock price: | C$0.60 at close Oct. 23
|
| Stock price: | C$0.56 at close Nov. 21
|
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