By Sheri Kasprzak
New York, Oct. 28 - TIR Systems Ltd. has concluded its previously announced private placement for C$14.2 million.
The company issued 7% convertible debentures due in 2011 and convertible into common shares at C$1.30 each.
For every C$1,000 in principal purchased, the investors will receive warrants for 200 shares. The warrants are exercisable at C$1.50 each for three years.
The interest rate of the debentures drops to 0% any time the company's quarterly trading price exceeds the conversion price by 225%.
The deal was first announced Aug. 15 as a C$10 million offering. The conversion price in the original offering had been set a C$2.00, the strike price of the warrants had been C$2.18 and the expiry of the warrants had been seven years. The size of the offering was increased to C$25 million on Sept. 6.
The terms of the warrants have changed since the offering was priced. Initially, the investors were to be granted warrants for 65 shares for every C$1,000 in debentures purchased.
Proceeds will be used for commercialization and general corporate purposes.
Vancouver, B.C.-based TIR develops lighting systems using sound-based and other technologies.
| Issuer: | TIR Systems Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$14.2 million
|
| Maturity: | 2011
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | C$1.30
|
| Warrants: | For 200 shares per C$1,000 in principal purchased
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$1.50
|
| Pricing date: | Aug. 15
|
| Upsized: | Sept. 6
|
| Settlement date: | Oct. 28
|
| Stock price: | C$1.47 at close Aug. 15
|
| Stock price: | C$1.17 at close Sept. 6
|
| Stock price: | C$1.20 at close Oct. 27
|
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