Minimum conversion price for one-year loan set at C$0.15 per share
By Jennifer Chiou
New York, Jan. 12 - Mira Resources Corp. said it has completed its previously downsized C$2 million convertible debt financing. A C$5 million debt financing was originally announced on Nov. 30.
The one-year loan bears interest at 12% per year.
According to a news release, funds under the loan are convertible into Mira common shares at the company's option at any time prior to maturity.
If converted, the outstanding amount will be converted at a price per share equal to 95% of the weighted average trading price of the stock for the 20 trading days preceding the date of conversion, subject to a minimum conversion price of C$0.15 per share.
Mira management contributed C$1.75 million of the C$2 million financing, which did not result in a change of control, the filing stated.
As reported on Monday, the company said that it is proceeding with a C$3.5 million non-brokered private placement of 17.5 million units at C$0.20 each.
Each unit is comprised of one common share and half of a warrant and will be exercisable at C$0.30 per share for 12 months from closing. The strike price is a 46.34% premium over the company's C$0.205 closing share price on Friday.
Management will participate in the placement.
The combined proceeds will be used for costs associated with the recently completed re-entry program on the company's TSB No. 1 well and for working capital.
Mira Resources is an oil and gas company based in Vancouver, B.C.
| Issuer: | Mira Resources Corp.
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| Issue: | Convertible debt facility, units of one common share and half of a warrant
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| Amount: | C$5.5 million (C$2 million debt facility, C$3.5 million of units)
|
| Agent: | Non-brokered
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| Pricing dates: | Jan. 9 for units, Nov. 30 for credit facility
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| Stock symbol: | TSX Venture: MRP
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| Stock price: | C$0.205 at close Jan. 6
|
| Market capitalization: | C$26.58 million
|
|
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| Convertible debt facility
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| Amount: | C$2 million
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| Maturity: | One year
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| Interest rate: | 12%
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| Conversion price: | 95% of weighted average trading price, subject to a minimum conversion price of C$0.15 per share
|
|
|
| Units
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| Amount: | C$3.5 million
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| Units: | 17.5 million
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| Price: | C$0.20
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| Warrants: | Half a warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.30
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