Deal is comprised of 6% convertibles sold with 100% warrant coverage
By Devika Patel
Knoxville, Tenn., Aug. 15 – Biosenta Inc. said it took in C$800,000 in the second tranche of a C$1.47 million private placement of 6% two-year convertible debentures, which includes a greenshoe of C$465,000. The deal raised C$665,000 on June 26 and was originally priced as a C$1 million offering.
The notes are convertible into common shares at C$0.40, which is a 166.67% premium to the June 25 closing share price of C$0.15.
Investors will also receive 100% warrant coverage. The two-year warrants are exercisable at C$1.00, a 566.67% premium to the June 25 closing price.
Proceeds will be used to repay C$350,000 of debt owed to Bassett Financial Corp., for sales, market development and general working capital purposes.
The Toronto company offers a retail line of anti-microbial products.
| Issuer: | Biosenta Inc.
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| Issue: | Convertible debentures
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| Amount: | C$1,465,000 (including C$465,000 greenshoe)
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| Maturity: | Two years
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| Coupon: | 6%
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| Conversion price: | C$0.40
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| Conversion premium: | 166.67%
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| Warrants: | 100% coverage
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| Warrant expiration: | Two years
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| Warrant strike price: | C$1.00
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| Settlement date: | June 26 (for C$665,000), Aug. 15 (for C$800,000)
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| Stock symbol: | CNSX: ZRO
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| Stock price: | C$0.15 at close June 25
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