By Devika Patel
Knoxville, Tenn., Nov. 9 - Ona Energy Inc. said it has entered into an agreement with Northern Securities Inc. for a C$15 million private placement of convertible debentures.
The company will issue up to 15,000 debentures, priced at C$1,000, with a 10% coupon, payable quarterly in cash.
The notes will mature in two years and be convertible into 1,250 units for one year at a conversion price of C$0.80 for each C$0.80 of invested principal.
The units will consist of a common share and a warrant, which is exerciseable at C$0.85 for the earlier of six months or until Ona Energy's shares are listed on either the Toronto Stock Exchange or the TSX Venture Exchange.
If the shares are not listed on a major Canadian exchange within six months, the conversion price of the warrants will be C$0.80, and the warrants are exercisable until the shares list on an exchange for a maximum of one year.
Each debenture may be converted at Ona Energy's option into common shares if the shares close higher than C$1.25 for 10 consecutive trading days on an exchange. The principal may be redeemed at the investors' option if Ona Energy has not listed its shares on a major Canadian exchange within one year.
Proceeds will be used to complete the first two phases of the Yongxing Power Plant Corp. project in China and for working capital.
Ona Energy is a Vancouver, B.C.-based international energy company focused on the acquisition and development of power generation and oil and gas projects.
| Issuer: | Ona Energy Inc.
|
| Issue: | Convertible debentures, convertible into 1,250 units or common shares, at Ona Energy's option
|
| Amount: | C$15 million
|
| Notes: | 15,000
|
| Price: | Par of C$1,000
|
| Maturity: | Two years
|
| Coupon: | 10%, payable quarterly
|
| Conversion price: | C$0.80
|
| Warrants: | One per unit upon conversion
|
| Warrant expiration: | The earlier of six months or Ona Energy's shares trading on a major Canadian exchange
|
| Warrant strike price: | C$0.80
|
| Agent: | Northern Securities Inc.
|
| Pricing date: | Nov. 9
|
| Stock symbol: | CNQ: OEIX
|
| Stock price: | C$0.82 at close Nov. 9
|
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