Three-year warrants included; warrants exercisable at C$0.60, C$0.75
By Devika Patel
Knoxville, Tenn., Oct. 1 – Smart Employee Benefits Inc. said it plans to raise C$3.5 million in a private placement of units and senior debt.
The company will sell 2 million units of one common share and one warrant at C$0.50 per unit, or a total of C$1 million.
It will also sell C$2.5 million of 8% one-year debt. Investors will receive one warrant for every C$1.25 of debt.
Each three-year warrant will be exercisable at C$0.60 in the first two years and at C$0.75 in the third year. The strike prices are 27.66% and 59.58% premiums, respectively, to the Sept. 30 closing share price of C$0.47.
Proceeds will be used for acquisitions and working capital.
The Toronto-based company is an employee benefits company focusing on plan administration and claim processing services to the Canadian market.
| Issuer: | Smart Employee Benefits Inc.
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| Issue: | Units of one common share and one warrant, senior debt
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| Amount: | C$3.5 million
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| Warrant expiration: | Three years
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| Warrant strike price: | C$0.60 in the first two years, C$0.75 in the third year
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| Pricing date: | Oct. 1
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| Stock symbol: | TSX Venture: SEB
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| Stock price: | C$0.47 at close Sept. 30
|
| Market capitalization: | C$29.55 million
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|
|
| Units
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| Amount: | C$1 million
|
| Units: | 2 million
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| Price: | C$0.50
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| Warrants: | One warrant per unit
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|
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| Debt
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| Amount: | C$2.5 million
|
| Maturity: | One year
|
| Coupon: | 8%
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| Warrants: | One warrant for every C$1.25 of debt
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