By Sheri Kasprzak
New York, Sept. 27 - Zone Mining Ltd. settled a $1 million private placement of senior secured convertible debentures.
The 12% debentures were purchased by Trident Growth Fund, LP as part of Zone's merger with ZM Acquisition Corp.
The debentures are due Sept. 21, 2007 and are convertible into common shares of ZM's stock at $1.25 each. The maturity of the debentures may come due once the company completes a public offering of ZM's stock for at least $3 million.
The investor will receive warrants for 500,000 shares of ZM stock, exercisable at $1.25 each for five years.
Under the terms of the merger, Zone will declare a stock divided of three shares of stock for every outstanding share of ZM. Zone must also cause 650,000 shares of ZM to be surrendered for cancellation.
Based in Bala Cynwyd, Pa., Zone is a mineral exploration company.
| Issuer: | Zone Mining Ltd.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $1 million
|
| Maturity: | Sept. 21, 2007
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $1.25 (into shares of ZM Acquisition Corp.)
|
| Warrants: | For 500,000 shares of ZM Acquisition Corp.
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Investor: | Trident Growth Fund, LP
|
| Settlement date: | Sept. 21
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
