Company intends to finance development, repayment of 17% debentures
By Devika Patel
Knoxville, Tenn., March 31 - Twoco Petroleums Ltd. said it concluded the initial tranche of 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 took in C$3.4 million by selling the convertibles in the first closing. The deal priced for C$7.7 million on Wednesday and will now raise C$7.9 million, as the company sold C$200,000 more than expected of convertibles.
In this tranche, Twoco sold C$3.4 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.
In addition, 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.
The agent has a C$875,000 greenshoe on the equity portion of the placement, which 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: | Common shares, flow-through common shares, redeemable convertible unsecured debentures
|
| Amount: | C$7.9 million
|
| Greenshoe: | C$875,000 (in shares)
|
| Warrants: | No
|
| Pricing date: | March 30
|
| Upsized: | March 31
|
| Settlement date: | March 31 (for C$3.4 million), April 29 (for C$4.5 million)
|
| Stock symbol: | TSX Venture: TWO
|
| Stock price: | C$0.28 at close March 30
|
| Market capitalization: | C$14.66 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$3.4 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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