Non-brokered deal offers one-year 5% secured subordinated debentures
By Devika Patel
Knoxville, Tenn., April 21 – KGIC Inc. said it increased its non-brokered private placement of 5% convertible secured subordinated debentures to C$6.5 million from C$5 million and amended the terms. The deal priced on April 1.
The debenture is due in one year. It converts to units of one common share and one half-share warrant at C$0.02 per unit, which is identical to the March 31 closing share price. The debentures were previously convertible into common shares at C$0.02 per share.
Each whole warrant is exercisable at C$0.05 for two years. The strike price is a 150% premium to the March 31 closing price.
Proceeds will be used as working capital and to service obligations owed to senior secured creditors.
Based in Toronto, KGIC owns and operates private English as a second language schools, career colleges and community colleges in Toronto, Vancouver, B.C., and Victoria, B.C.
| Issuer: | KGIC Inc.
|
| Issue: | Convertible secured subordinated debentures
|
| Amount: | C$6.5 million
|
| Maturity: | One year
|
| Coupon: | 5%
|
| Conversion price: | C$0.02
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.05
|
| Agent: | Non-brokered
|
| Pricing date: | April 1
|
| Revised: | April 21
|
| Stock symbol: | TSX Venture: LRN
|
| Stock price: | C$0.02 at close March 31
|
| Market capitalization: | C$4.48 million
|
|
|
|
|
© 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.
