By Devika Patel
Knoxville, Tenn., March 11 - ONA Energy Inc. said it will raise C$15 million in a private placement of units and convertible debentures.
The company will sell 12.5 million units of one common share and one half-share warrant at C$0.20 each for C$2.5 million.
Each full warrant is exercisable at C$0.30 for 18 months.
If ONA's common shares have a weighted average trading price of C$0.60 or higher for 20 consecutive days, the company may force holders to exercise their warrants.
ONA also will sell C$12.5 million of convertible debentures.
The three-year 12% debentures will be sold in denominations of C$1,000.00. They will be convertible into common shares at C$0.30.
Each convertible debenture will be accompanied by 1,667 warrants, which will be exercisable at C$0.40 for three years.
The company may require these debentures be converted if the weighted average trading price of its common shares is at C$0.80 or above for 20 consecutive days.
D&D Securities Co. is the lead agent.
Proceeds will be used to support the purchase and installation of equipment for the second 60 MW unit at the YPPC facility, for improvements to current operations, to restructure current indebtedness and other general working capital items.
ONA is an energy company based in Vancouver, B.C.
| Issuer: | ONA Energy Inc.
|
| Issue: | Units of one common share and one half-share warrant, convertible debentures
|
| Amount: | C$15 million
|
| Agent: | D&D Securities Co. (lead)
|
| Pricing date: | March 11
|
| Stock symbol: | CNQ: OEE
|
| Stock price: | C$0.18 at close March 11
|
|
|
| Units
|
| Amount: | C$2.5 million
|
| Units: | 12.5 million
|
| Price: | C$0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.30
|
|
|
| Debentures
|
| Amount: | C$12.5 million
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Price: | Par of C$1,000.00
|
| Yield: | 12%
|
| Conversion price: | C$0.30
|
| Warrants: | 1,667 warrants per debenture
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.40
|
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