Offering is conditioned on one-for-four reverse split of common stock
By Angela McDaniels
Tacoma, Wash., July 12 - Mukuba Resources Ltd. plans to raise C$750,000 to C$1.5 million through a private placement of units.
The company will sell up to 12.5 million units for C$0.12 each. Each unit will consist of one share and one warrant, according to a company news release.
Each warrant will be exercisable for two years for one share at a price of C$0.16.
Cormark Securities Inc. and Ocean Equities Ltd. have committed to purchase, or find suitable substitute purchasers for, at least C$500,000.
The company will issue a C$250,000 debenture that is convertible into 2,083,333 units once the offering closes. These units are included in the 12.5 million units described above.
The remaining C$750,000 of the financing will be issued to suitable subscribers on a best-efforts basis. The company said there is no current commitment from any subscriber for the remaining C$750,000.
The offering is conditioned on the completion of a one-for-four reverse split of the company's shares, which requires shareholder approval. The company plans to hold a shareholder meeting on Aug. 30.
The warrant strike price is a 357% premium over the company's C$0.035 closing share price on July 11. On a post-reverse split basis, it would be a 14.3% premium.
Closing is expected to occur on Sept. 12.
If the reverse split and the offering are not completed within the next four months, the debenture will bear interest at a rate of 10% effective from the date of issue and be convertible into shares at a rate of C$0.10 per common share on a pre-consolidation basis.
The proceeds of the offering will be used for general corporate purposes.
Mukuba is a mining company based in Toronto.
| Issuer: | Mukuba Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$750,000 to C$1.5 million
|
| Units: | Up to 12.5 million
|
| Price: | C$0.12
|
| Warrants: | One warrant for one share per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.16
|
| Agents: | Cormark Securities Inc. and Ocean Equities Ltd. (for at least C$500,000)
|
| Pricing date: | July 12
|
| Settlement date: | Sept. 12
|
| Stock symbol: | TSX Venture: MKU
|
| Stock price: | C$0.035 at close July 11
|
| Market capitalization: | C$2.7 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
