By Sheri Kasprzak
New York, March 15 - Omnitech Consultant Group Inc. said it is in talks to close a C$1.5 million private placement of convertible debentures.
The 13.5% debentures will be purchased by Fier Succes Fund and Gestion Allard et Dube Inc.
The debentures are due Feb. 28, 2008 and are convertible into units of one share and one warrant at C$0.285 each.
The conversion price represents at 10.9% discount to the company's C$0.32 closing price on March 14.
The warrants associated with the units are exercisable at the then-applicable conversion price through Feb. 28, 2008.
The deal is expected to close within the next 30 days.
Proceeds will be used to acquire all of the outstanding shares of Groupe Cadec Inc., a Laval, Quebec-based company that provides technical support and equipment maintenance for a variety of companies. The remainder of the proceeds will be used for working capital.
Omnitech concluded a similar offering in September 2005, selling C$1.5 million in convertible debentures to Sipar Inc. Those debentures bore interest at 14% annually and are due Sept. 21, 2008. The debentures were convertible into units of one share and one warrant at C$0.70 each.
Based in Quebec City, Omnitech is a technology consulting company focused on the engineering, information technology and systems maintenance fields.
| Issuer: | Omnitech Consultant Group Inc.
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| Issue: | Convertible debentures
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| Amount: | C$1.5 million
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| Maturity: | Feb. 28, 2008
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| Coupon: | 13.5%
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| Price: | Par
|
| Yield: | 13.5%
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| Conversion price: | Into units of one share and one warrant at C$0.285 each
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| Warrants: | One warrant per unit upon conversion
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| Warrant expiration: | Feb. 28, 2008
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| Warrant strike price: | Equal to the then-applicable conversion price
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| Investors: | Fier Succes Fund and Gestion Allard et Dube Inc.
|
| Announcement date: | March 15
|
| Stock symbol: | TSX Venture: GCO
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| Stock price: | C$0.32 at close March 14
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