Proceeds from deal to be used to repay $7.5 million of company’s debt
By Devika Patel
Knoxville, Tenn., March 18 – OneRoof Energy Group, Inc. said it has completed a $2 million initial tranche of a $15 million private placement of secured convertible promissory notes with Spindrift Equities, LLC. The deal with Black Coral Capital LLC and other investors was announced on Nov. 24 and priced on Jan. 16.
The 10% notes mostly will be convertible into common stock at $0.71 per share, which the company said at pricing was identical to the closing price of its stock on Jan. 15, C$0.71.
The notes mature in 15 months, but the first-tranche notes are to convert at C$0.135 per share, an 80.99% discount to the Jan. 15 closing price, and will mature on April 15, 2015.
Proceeds will be used to repay about $7.5 million of debt and for general working capital purposes, including general and administrative expenses, IT development and investment in solar projects.
The solar services provider is based in San Diego.
| Issuer: | OneRoof Energy Group, Inc.
|
| Issue: | Secured convertible promissory notes
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| Amount: | $15 million
|
| Maturity: | 15 months
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| Coupon: | 10%
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| Conversion prices: | $0.71, C$0.135 (for $2 million)
|
| Warrants: | No
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| Investor: | Spindrift Equities, LLC (for $2 million), Black Coral Capital LLC
|
| Pricing date: | Jan. 16
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| Settlement date: | March 18 (for $2 million)
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| Stock symbol: | TSX Venture: ON
|
| Stock price: | C$0.71 at close Jan. 15
|
| Market capitalization: | C$3.98 million
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