Deal funds retirement of C$2.19 million debt, general working capital
By Devika Patel
Knoxville, Tenn., Aug. 12 – HealthSpace Data Systems Ltd. said on Thursday that it will raise C$2.5 million in a private placement of units and secured convertible debentures.
The company will sell 20 million units of one common share and one half-share warrant at C$0.05 per unit.
Each whole warrant will be exercisable for one year at C$0.075, a 7.14% premium to the Aug. 11 closing share price of C$0.07.
The company also will sell C$1.5 million of 10% debentures, which will mature in two years. The debentures convert to common stock at C$0.075 per share in the first year and at C$0.10 per share after one year. The conversion prices are 7.14% and 42.86% premiums to the Aug. 11 closing share price, respectively.
Proceeds will be used to retire a C$2,185,000 debt owed to R.C. Morris & Co. Special Opportunities Debt Fund II LP and for general working capital purposes.
HealthSpace provides inspection, information and communication management systems for governments and is based in Chilliwack, B.C.
| Issuer: | HealthSpace Data Systems Ltd.
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| Issue: | Units of one common share and one half-share warrant, secured convertible debentures
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| Amount: | C$2.5 million
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| Pricing date: | Aug. 11
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| Stock symbol: | CSE: HS
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| Stock price: | C$0.07 at close Aug. 11
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|
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| Units
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| Amount: | C$1 million
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| Units: | 20 million
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| Price: | C$0.05
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.075
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| Debentures
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| Amount: | C$1.5 million
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| Maturity: | Two years
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| Coupon: | 10%
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| Conversion price: | C$0.075 in year one and C$0.10 in year two
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| Conversion premium: | 7.14% in year one and 42.86% in year two
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