Deal sells unsecured convertible debentures with 20% warrant coverage
By Devika Patel
Knoxville, Tenn., Sept. 15 – Delivra Inc. said it raised C$2.02 million in a non-brokered private placement of 6% unsecured convertible debentures. The deal priced for about C$2 million on Aug. 31.
The convertibles are due in one year and will be convertible into units of one common share and a half-share warrant at C$0.55 per unit. Each whole, 18-month unit warrant is exercisable at C$0.80, a 53.85% premium to the Aug. 30 closing share price of C$0.52.
The debentures have an automatic conversion feature.
Investors also received 20% warrant coverage, or a total of 404,180 warrants, with each 18-month warrant exercisable at C$0.75, a 44.23% premium to the Aug. 30 closing share price. The debenture conversion price is a 5.77% premium to that price.
Delivra, based in Burlington, Ont., is a scientific transdermal technology company.
| Issuer: | Delivra Inc.
|
| Issue: | Unsecured convertible debentures, convertible into units of one common share and a half-share warrant
|
| Amount: | C$2,020,900
|
| Maturity: | One year
|
| Coupon: | 6%
|
| Conversion premium: | 80%
|
| Conversion price: | C$0.55
|
| Call: | Yes
|
| Warrants: | 20% coverage, plus one half-share warrant per unit upon conversion, a total of 404,180 warrants
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.75, C$0.80
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 31
|
| Settlement date: | Sept. 15
|
| Stock symbol: | TSX Venture: DVA
|
| Stock price: | C$0.52 at close Aug. 30
|
| Market capitalization: | C$19.54 million
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