Company intends to finance development, repayment of 17% debentures
By Devika Patel
Knoxville, Tenn., March 30 - Twoco Petroleums Ltd. said it arranged a private placement of shares and redeemable, convertible, unsecured debentures. It will raise C$4.5 million in the equity sale through Macquarie Private Wealth Inc. and C$3.2 million by selling the convertibles. The agent has a C$875,000 greenshoe on the equity portion of the placement.
The company will sell 12,963,000 common shares at C$0.27 per share. The price per share is a 12.5% premium to C$0.24, the March 29 closing share price.
The company also will sell 3,225,800 flow-through common shares at C$0.31 per share. The price per share is a 29.17% premium to the March 29 closing share price.
In addition, Twoco will sell C$3.2 million of 8% redeemable, convertible, unsecured debentures due Dec. 31, 2012.
The debentures will be convertible into common shares at an initial conversion price of C$0.324 per share, which is a 35% premium to the March 29 closing price. The company may redeem the convertibles in certain circumstances.
Settlement of the convertibles is expected March 31; the shares will settle April 29.
Proceeds of the equity sale will be used to develop the company's Sparky heavy oil property in the Warspite area of Alberta and for general corporate purposes. Proceeds from the debentures will be used to repay the company's 17% unsecured debentures which were issued in 2009.
Calgary, Alta.-based Twoco is an oil and natural gas exploration company.
| Issuer: | Twoco Petroleums Ltd.
|
| Issue: | Flow-through common shares, common shares, redeemable, convertible, unsecured debentures
|
| Amount: | C$7.7 million
|
| Greenshoe: | C$875,000 (in shares)
|
| Warrants: | No
|
| Pricing date: | March 30
|
| Stock symbol: | TSX Venture: TWO
|
| Stock price: | C$0.28 at close March 30
|
| Market capitalization: | C$16.12 million
|
|
|
| Common shares
|
| Amount: | C$3,500,010
|
| Shares: | 12,963,000
|
| Price: | C$0.27
|
| Agent: | Macquarie Private Wealth Inc.
|
| Pricing date: | April 29
|
|
|
| Flow-through shares
|
| Amount: | C$1 million
|
| Shares: | 3,225,800
|
| Price: | C$0.31
|
| Agent: | Macquarie Private Wealth Inc.
|
| Pricing date: | April 29
|
|
|
| Debentures
|
| Amount: | C$3.2 million
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | 8%
|
| Conversion price: | C$0.324
|
| Conversion premium: | 35%
|
| Call: | Yes
|
| Settlement date: | March 31
|
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