By Devika Patel
Knoxville, Tenn., March 25 - Outlook Resources Inc. said it will raise up to C$6.75 million through a non-brokered private placement of units.
Outlook will sell 3,750 units at C$1,800 apiece. Each unit will consist of 10,000 common shares, priced at $0.06 each, 10,000 non-transferable warrants and one C$1,200 convertible promissory note.
Each whole two-year warrant is exercisable at C$0.10 for the first year and at C$0.15 for the second year.
The promissory notes carry a 10% coupon, which is payable semi-annually in advance. In the first year, each note is convertible into 12,000 common shares at C$0.10 per share. In the second year, each note is convertible into 8,000 common shares at C$0.15 per share.
The notes are redeemable by the holder or retractable by the company after two years. The interest will continue to be payable semi-annually until the notes have been converted, redeemed or retracted.
If, after six months, the company's common shares close at C$0.20 or higher for 20 consecutive trading days, the notes will convert automatically. If such an event occurs in the first year, the conversion price will be C$0.10 per share. If it occurs in the second year, the price will be C$0.15 per share.
Proceeds will be used for the acquisition and installation of the equipment necessary to construct the planned Prairie Bio-Cube production facility and to satisfy the facility's working capital requirements during the construction period. The balance of the proceeds will be used to satisfy Outlook's financial commitments and for general working capital.
Based in Selkirk, Manitoba, Outlook focuses on renewable resources and environmental projects.
| Issuer: | Outlook Resources Inc.
|
| Issue: | Units of 10,000 common shares, 10,000 warrants and one C$1,200 convertible promissory note
|
| Amount: | C$6.75 million
|
| Units: | 3,750
|
| Price: | C$1,800
|
| Warrants: | 10,000 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10 for the first year, C$0.15 thereafter
|
| Agent: | Non-brokered
|
| Pricing date: | March 25
|
| Stock symbol: | TSX Venture: OLR
|
| Stock price: | C$0.045 at close March 24
|
|
|
| Convertible promissory note
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| Coupon: | 10%, payable semi-annually in advance
|
| Price: | Par of C$1,200
|
| Yield: | 10%
|
| Conversion price: | C$0.10 the first year, C$0.15 thereafter
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