Company offers two-year debentures and bridge loan to fund operations
By Devika Patel
Knoxville, Tenn., Dec. 1 – TVI Pacific Inc. said on Nov. 27 that it plans a C$2 million private placement of two-year 8% convertible debentures.
The debenture converts to common stock at a conversion price of C$0.05 per share in the first year and at C$0.10 per share in the second year. The conversion prices are 66.67% and 233.33% premiums to C$0.03, the Nov. 26 closing share price.
The company said its financing amount includes a C$400,000 8% bridge loan with Mindoro Resources Ltd. with similar features to the convertible. The loan is due on the earlier of Jan. 31, 2015 or completion of the convertibles sale.
Proceeds from the placement will be used to pay off the C$400,000 Mindoro loan and for other purposes to be disclosed at a later date, when the offering’s terms are finalized. Proceeds from the loan will be used for operations.
The Calgary, Alta.-based resource company focuses on the production, development, exploration and acquisition of resource projects in the Philippines and southeast Asia.
| Issuer: | TVI Pacific Inc.
|
| Issue: | Convertible debenture, bridge loan
|
| Amount: | C$2 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Conversion price: | C$0.05 in the first year, C$0.10 in the second year
|
| Warrants: | No
|
| Pricing date: | Nov. 27
|
| Stock symbol: | Toronto: TVI
|
| Stock price: | C$0.03 at close Nov. 26
|
| Market capitalization: | C$16.39 million
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