Proceeds of deal used for working capital, general corporate purposes
By Devika Patel
Knoxville, Tenn., June 29 - Biorem Inc. said it priced a C$1.5 million private placement of convertible debenture units.
The company will sell 1,500 units of a C$1,000 convertible extendible secured subordinated debenture and 4,545 warrants at C$1,000 per unit.
The 8% convertible debentures mature in two years and will be convertible into common stock at a conversion price of C$0.11 per share, which is a 10% premium to the June 28 closing price of C$0.10.
The debentures' maturity may be extended and may be prepaid.
Each warrant is exercisable at C$0.11 for two years. The strike price also reflects a 10% premium to the June 28 closing share price.
Insiders may participate for more than 25% of the placement.
Proceeds will be used for working capital and general corporate purposes.
Biorem, based in Guelph, Ont., manufactures technologies used to filter air in municipal and industrial applications.
| Issuer: | Biorem Inc.
|
| Issue: | Units of a C$1,000 convertible extendible secured subordinated debenture and 4,545 warrants
|
| Amount: | C$1.5 million
|
| Units: | 1,500
|
| Price: | C$1,000
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Conversion price: | C$0.11
|
| Conversion premium: | 10%
|
| Call: | Yes
|
| Warrants: | 4,545 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.11
|
| Pricing date: | June 29
|
| Stock symbol: | TSX Venture: BRM
|
| Stock price: | C$0.10 at close June 28
|
| Market capitalization: | C$1.23 million
|
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