Variable-coupon 15-month loan to convert at C$0.588 per common share
By Devika Patel
Knoxville, Tenn., June 20 – Treasury Metals Inc. said it settled a $4.4 million convertible loan with Loinette Co. Leasing Ltd. The deal priced on March 31.
The loan is due in 15 months and $2.2 million of the debt is convertible into common stock at C$0.588 per share, a 17.6% premium to the March 30 closing share price of C$0.50. Interest accrues at the Libor rate plus 775 basis points.
Loinette also received 1.5 million warrants, which are each exercisable at C$0.395 until Aug. 18, 2018, and 1.5 million additional warrants, which are each exercisable at C$0.35 until May 18, 2018. The strike prices are 21% and 30% discounts to the March 30 closing price. The investor also received 220,000 common shares and a $175,000 fee.
Toronto-based Treasury Metals is a gold explorer.
| Issuer: | Treasury Metals Inc.
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| Issue: | Convertible loan, 220,000 common shares
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| Amount: | $4.4 million
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| Maturity: | 15 months
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| Coupon: | Libor plus 775 bps
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| Conversion price: | C$0.588
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| Warrants: | 3 million
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| Warrant expiration: | Aug. 18, 2018, May 18, 2018
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| Warrant strike price: | C$0.395, C$0.35
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| Investor: | Loinette Co. Leasing Ltd.
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| Fees: | $175,000
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| Pricing date: | March 31
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| Settlement date: | June 20
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| Stock symbol: | Toronto: TML
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| Stock price: | C$0.50 at close March 30
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| Market capitalization: | C$48.76 million
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