By Devika Patel
Knoxville, Tenn., Oct. 5 - Adriana Resources Inc. said it now will raise C$3.5 million, up from C$2.5 million, from a non-brokered private placement of a three-year unsecured subordinated convertible debenture.
The debenture is convertible into common shares at C$1.10 per share if exercised before Oct. 1, 2009 and at C$1.21 per share if exercised on or before Oct. 1, 2010. Up to 3,181,818 shares may be issued for the note's conversion.
The note has a 7% coupon.
Patriarco Holdings Ltd., the investor, has agreed not to convert the note if the conversion results in it holding more than 20% of Adriana's outstanding shares unless Adriana shareholders first approve the conversion.
Any shares issued upon conversion will have a four-month hold period.
The deal priced on Sept. 14 as a placement of 2,272,727 common shares at C$1.10 apiece.
Proceeds will be used for development and general working capital.
Adriana is a mineral exploration and development company based in Vancouver, B.C.
| Issuer: | Adriana Resources Inc.
|
| Issue: | Unsecured subordinated convertible debenture convertible into up to 3,181,818 common shares
|
| Amount: | C$3.5 million
|
| Maturity: | Three years
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | C$1.10 per share if exercised before Oct. 1, 2009; C$1.21 per share if exercised on or before Oct. 1, 2010
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Patriarco Holdings Ltd.
|
| Pricing date: | Sept. 14
|
| Amended and upsized: | Oct. 5
|
| Stock symbol: | TSX Venture: ADI
|
| Stock price: | C$0.95 at close Oct. 4
|
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