By Sheri Kasprzak
Atlanta, Dec. 21 - OMT Inc. said Tuesday it closed a private placement for C$1.4 million in debentures.
The company sold C$1 million in 8% subordinated convertible redeemable debentures, which mature in four years. The debentures are convertible into shares at C$0.10 for the first two years, C$0.11 in the third year and C$0.12 in the fourth year.
The offering allows for an additional C$400,000 public investment and matching funds from current shareholder Ensis Growth Fund Inc.
Along with the private placement, OMT finished the redemption of all its issued and outstanding preferred shares for a total of C$3,702,784. The preferreds were held by Renaissance Capital Manitoba Ventures Fund Ltd., Ensis Growth Fund and Ensis Investment Ltd.
Wellington West Capital Inc. was the placement agent in the offering.
Based in Winnipeg, Man., OMT is a technology provider for media and broadcast companies. It plans to use the proceeds from the debentures to fund its growth plans.
| Issuer: | OMT Inc.
|
| Issue: | Subordinated convertible debentures
|
| Amount: | C$1.4 million
|
| Maturity: | Four years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
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| Conversion price: | C$0.10 for two years; C$0.11 for the third year; C$0.12 for the fourth year
|
| Warrants: | No
|
| Underwriter: | Wellington West Capital Inc.
|
| Announcement date: | Nov. 10
|
| Settlement date: | Dec. 21
|
| Stock price: | C$0.10 at close Oct. 20 (last trade)
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