Euro Pacific Canada, Roth Capital get finder’s fees; Crede is investor
By Devika Patel
Knoxville, Tenn., July 11 – Orbite Aluminae Inc. said it settled a C$10 million private placement of convertible debenture units with Crede Capital Group, LLC. The deal priced on March 10.
The company sold units of a C$10 million convertible unsecured debenture and 13 million warrants.
The 7.5% convertibles mature in five years on July 11, 2019 and will be convertible into common stock at C$0.50 per share, which is a 35.14% premium to the March 7 closing price of C$0.37 and also the five-day volume-weighted average price at pricing.
Upon conversion, Crede will also receive a number of shares equal to the additional interest it would have received if it had held the debenture until maturity, at a price-per-share equal to the market price of the stock preceding the conversion date.
The debentures are redeemable at any time.
Each warrant is exercisable at C$0.60 for three years. The strike price reflects a 62.16% premium to the March 7 closing share price.
Euro Pacific Canada Inc. and Roth Capital will receive a 6% finder’s fee and 1.2 million finder’s warrants.
“The funds from this placement will go towards the completion of our 3 tpd HPA facility. We continue to be well on schedule towards commissioning at the end of the year, with commercial production commencing in the first quarter of 2015,” chief executive officer Glenn Kelly said in a press release.
The Montreal company develops technologies for extracting metallurgical-grade alumina from aluminous clay.
| Issuer: | Orbite Aluminae Inc.
|
| Issue: | Units of a C$10 million convertible unsecured debenture and 13 million warrants
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| Amount: | C$10 million
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| Maturity: | July 11, 2019
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| Coupon: | 7.5%
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| Conversion price: | C$0.50
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| Conversion premium: | 35.14%
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| Call: | Yes
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| Warrants: | 13 million warrants per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | C$0.60
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| Investor: | Crede Capital Group, LLC
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| Pricing date: | March 10
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| Settlement date: | July 11
|
| Stock symbol: | Toronto: ORT
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| Stock price: | C$0.37 at close March 7
|
| Market capitalization: | C$147.95 million
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