Deal sells four-year 10% convertible debentures that convert to units
By Devika Patel
Knoxville, Tenn., June 5 - Zaio Corp. said that it raised C$444,000 in the second tranche of a C$3 million private placement of 10% secured redeemable convertible debentures. MGI Securities Inc. is the agent for the deal, which priced with a 15% greenshoe on April 8 and raised C$931,000 on May 9.
The debentures, sold in increments of C$1,000, mature in four years and are convertible into units at C$0.12 per unit. The notes may be prepaid.
Each unit consists of one common share and one warrant, with each warrant exercisable at C$0.15 for two years.
The conversion price reflects a 9.09% premium to the April 5 closing share price of C$0.11. The warrant strike price is a 36.36% premium to that price.
Based in Calgary, Alta., Zaio maintains a database of property information.
| Issuer: | Zaio Corp.
|
| Issue: | Secured redeemable convertible debentures
|
| Amount: | C$3 million
|
| Greenshoe: | 15%
|
| Maturity: | Four years
|
| Coupon: | 10%
|
| Price: | C$1,000
|
| Conversion price: | C$0.12
|
| Call: | Yes
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
| Agent: | MGI Securities Inc.
|
| Pricing date: | April 8
|
| Settlement dates: | May 9 (for C$931,000), June 5 (for C$444,000)
|
| Stock symbol: | TSX Venture: ZAO
|
| Stock price: | C$0.11 at close April 5
|
| Market capitalization: | C$4.42 million
|
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