By Devika Patel
Knoxville, Tenn., Aug. 6 - Whitemud Resources Inc. announced it raised C$10.51 million in a private placement of units.
The company sold 10,513 units at C$1,000 apiece. Each unit consists of one C$1,000 12% secured redeemable convertible debenture and 200 warrants.
The debentures mature on July 31, 2012 and are convertible into common shares at C$0.91 per share.
Beginning two years after issuance, the debentures will be callable if the weighted average trading price of Whitemud common shares is at least 125% of the conversion price for 20 consecutive trading days.
Each warrant is exercisable at C$1.14 for three years.
Proceeds will be used to reduce short-term debt and for general corporate purposes.
Calgary, Alta.-based Whitemud Resources is a mining company.
| Issuer: | Whitemud Resources Inc.
|
| Issue: | Units of one C$1,000 secured redeemable convertible debenture and 200 warrants
|
| Amount: | C$10,513,000
|
| Units: | 10,513
|
| Price: | C$1,000
|
| Warrants: | 200 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.14
|
| Settlement date: | Aug. 6
|
| Stock symbol: | TSX Venture: WMK
|
| Stock price: | C$0.92 at close Aug. 6
|
| Market capitalization: | C$16.1 million
|
|
|
| Debentures
|
| Maturity: | July 31, 2012
|
| Coupon: | 12%
|
| Price: | Par of C$1,000
|
| Yield: | 12%
|
| Conversion price: | C$0.91
|
| Call option: | After two years if stock's weighted average trading price is at least 125% of conversion price for 20 consecutive trading days
|
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