Company offers two-year senior unsecured notes to fund exploration
By Devika Patel
Knoxville, Tenn., Dec. 18 - Asia Now Resources Corp. said it raised C$1.25 million in the first tranche of a C$2.5 million non-brokered private placement of 12% two-year senior unsecured convertible debentures. The deal priced on Nov. 28.
The debenture converts to common stock at a conversion price of C$0.05 per share in the first year and at C$0.10 per share in the second year. The conversion prices are respective 150% and 400% premiums to C$0.02, the Nov. 27 closing share price.
The company may redeem the notes with a 10% premium.
China Gold Pte. Ltd. has committed to invest at least $1.25 million.
Settlement of the second and final C$1.25 million tranche is expected on Dec. 23.
Proceeds will be used for exploration activities in China, general and administrative expenses and for general working capital purposes.
Based in Toronto, Asia Now acquires and develops mineral properties in China.
| Issuer: | Asia Now Resources Corp.
|
| Issue: | Senior unsecured convertible debenture
|
| Amount: | C$2.5 million
|
| Maturity: | Two years
|
| Coupon: | 12%
|
| Conversion price: | C$0.05 in the first year, C$0.10 in the second year
|
| Call: | At a 10% premium
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | China Gold Pte. Ltd. (for at least $1,248,000)
|
| Pricing date: | Nov. 28
|
| Settlement date: | Dec. 18 (for C$1,248,000), Dec. 23 (for C$1,252,000)
|
| Stock symbol: | TSX Venture: NOW
|
| Stock price: | C$0.02 at close Nov. 27
|
| Market capitalization: | C$1.11 million
|
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