Deal conducted through agent Jacob Securities to fund working capital
By Devika Patel
Knoxville, Tenn., Sept. 25 – Axios Mobile Assets Corp. said it will raise C$3 million in a private placement of convertible debenture units on a best-efforts basis. Jacob Securities Inc. is the agent and has a C$500,000 greenshoe.
The company will sell 3,000 units of a C$1,000 12% unsecured convertible debenture and 5,000 warrants at C$1,000 per unit. Each warrant is exercisable at C$0.20 for three years.
The convertibles mature in three years, and will be convertible into common stock at C$0.10 per share, or 10,000 shares per C$1,000 of debentures. The company may force conversion or redeem the convertibles at 104. The debentures may also be put.
The conversion price is identical to the Sept. 24 closing share price. The warrant strike price is a 100% premium to that price.
Proceeds will be used to manufacture composite, RFID enabled pallets to fulfil existing orders, for working capital and for general corporate purposes.
Vaughn, Ont.-based Axios is a logistics enabler. The Axios bundled offering provides the customer with efficiencies in total cost of ownership, useful life, customized configurations and a revenue stream through carbon credit generation, monitoring and the monetizing of carbon emissions reductions.
| Issuer: | Axios Mobile Assets Corp.
|
| Issue: | Units of a C$1,000 unsecured convertible debenture and 5,000 warrants
|
| Amount: | C$3 million
|
| Greenshoe: | C$500,000
|
| Units: | 3,000
|
| Price: | C$1,000.00
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Conversion price: | C$0.10
|
| Conversion ratio: | 10,000 shares per C$1,000 of debentures
|
| Call: | At 104
|
| Put: | Yes
|
| Warrants: | 5,000 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.20
|
| Agent: | Jacob Securities Inc.
|
| Pricing date: | Sept. 25
|
| Stock symbol: | CNSX: AXA
|
| Stock price: | C$0.10 at close Sept. 24
|
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