By Sheri Kasprzak
New York, July 28 - Advanced Research Technologies Inc. said it has completed a private placement for $5 million.
The company sold senior secured convertible debentures to institutional investors in the United States. Those investors have an option to buy an additional $2.5 million in principal of the debentures.
The debentures bear interest at 9% annually, mature on Jan. 28, 2008 and are convertible into common shares at $0.99 each.
The company may force conversion if, any time after Nov. 28, 2006 its stock price exceeds C$2.23 per share for 20 consecutive trading days.
The investors also received warrants for 1,110,139 shares, exercisable at C$1.16 each for five years and for 123,349 shares at C$1.39 each for five years.
Including the $5.9 million in 7% convertible debentures the company sold to OppenheimerFunds, Inc. on July 11, this financing brings to $10.9 million the proceeds the company has raised in private placements this month.
Proceeds will be used for clinical development and trials on its SoftScan product. The remainder will be used for enhancements to one of its products - eXplore Optics.
Based in Montreal, Advanced Research Technologies is a medical device company focused on optical molecular imaging products for the healthcare and pharmaceutical industries.
| Issuer: | Advanced Research Technologies Inc.
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| Issue: | Senior secured convertible debentures
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| Amount: | $5 million
|
| Maturity: | Jan. 28, 2008
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
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| Conversion price: | C$0.99
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| Call: | May force conversion if stock exceeds C$2.23 for 20 consecutive trading days
|
| Warrants: | For 1,233,488 shares
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| Warrant expiration: | Five years
|
| Warrant strike price: | C$1.16
|
| Settlement date: | July 28
|
| Stock price: | C$0.90 at close July 28
|
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