Convertibles, notes issue part of refinancing with Concept Capital
By Susanna Moon
Chicago, Aug. 26 – Atlanta Gold Inc. said it completed its C$550,000 private placement of convertible debentures and refinancing with Concept Capital Management Ltd.
The company refinanced C$3.25 million of debt by issuing Concept Capital Management $1.5 million principal amount of senior secured notes and a C$1.5 million principal amount convertible debenture, according to a company press release.
The convertibles have a coupon of 10%, mature April 1, 2018 and are convertible at a price of C$0.10 per share, which is a 25% premium to the company’s closing price on Aug. 25.
The senior secured notes bear interest at 10% per year and mature Aug. 31, 2018. They are repayable in cash installments at the rate of 25%, 35% and 40% on Aug. 31, 2016, Aug. 31, 2017 and Aug. 31, 2018, respectively.
Under the refinancing, Concept Capital Management received an option to purchase 1,567.5 troy ounces of gold at $1,100 per troy ounce until Aug. 31, 2018, with the option vesting at the rate of 25%, 35% and 40% on Aug. 31, 2016, Aug. 31, 2017 and Aug. 31, 2018, respectively.
Proceeds will be used for working capital purposes.
Atlanta Gold is a gold exploration company based in Toronto.
| Issuer: | Atlanta Gold Inc.
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| Issue: | Convertible debentures, senior secured notes
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| Pricing date: | April 2
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| Settlement date: | Aug. 26
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| Stock symbol: | TSX Venture: ATG
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| Stock price: | C$0.08 at close Aug. 25
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| Market capitalization: | C$2 million
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| Convertibles
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| Amount: | C$2.05 million
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| Maturity: | April 1, 2018
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| Coupon: | 10%
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| Conversion price: | C$0.10
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| Investor: | Concept Capital Management Ltd. (for C$1.5 million)
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| Senior notes
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| Amount: | $1.5 million
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| Maturity: | Aug. 31, 2018
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| Coupon: | 10%
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