Deal sells four-year 10% convertible debentures that convert to units
By Devika Patel
Knoxville, Tenn., Aug. 15 - Zaio Corp. said that it raised C$1.07 million in the third tranche of a C$3 million private placement of 10% secured redeemable convertible debentures. MGI Securities Inc. is the lead agent for the deal, which priced with a 15% greenshoe on April 8, raised C$931,000 on May 9 and C$444,000 on June 5. The deal has raised a total of C$2.44 million.
The debentures, sold in increments of C$1,000, mature in May 2017 and are convertible into units at C$0.12 per unit. The notes may be prepaid at a 10% premium.
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.
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Issue: | Secured redeemable convertible debentures
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Amount: | C$3 million
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Greenshoe: | 15%
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Maturity: | May 9, 2017
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Coupon: | 10%
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Price: | C$1,000
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Conversion price: | C$0.12
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Call: | At a 10% premium
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Warrants: | One warrant per unit upon conversion
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Warrant expiration: | Two years
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Warrant strike price: | C$0.15
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Agent: | MGI Securities Inc. (lead)
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Pricing date: | April 8
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Settlement date: | May 9 (for C$931,000), June 5 (for C$444,000), Aug. 15 (for C$1,068,000)
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Stock symbol: | TSX Venture: ZAO
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Stock price: | C$0.11 at close April 5
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Market capitalization: | C$3.74 million
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