By Abigail W. Adams
Portland, Me., Jan. 12 – Emblem Corp. priced C$25 million in three-year convertible debentures with a coupon of 8% and a 2.68% initial conversion premium in a bought deal announced prior to market open Friday.
In addition to the convertible debentures, Emblem priced C$25 million units at a price of C$2.05 per unit as part of the bought deal.
The company may force the conversion of the 8% convertible notes at the initial conversion price if average daily weighted trading price of the shares is greater than C$3.45 for any 10 consecutive trading days, according to a company release. There is takeover protection.
The initial conversion price is C$2.30.
If 90% of the principal amount is tendered for redemption upon a change of control, the company may redeem all remaining convertible debentures at the offer price, according to a company release.
The units priced in connection with the convertible debentures carry a C$3.75 million greenshoe but there is no over-allotment option for the convertibles.
Eight Capital was the underwriter.
Emblem is a Toronto-based medical marijuana company.
| Issuer: | Emblem Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$25 million
|
| Maturity: | Feb. 2, 2021
|
| Coupon: | 8%
|
| Initial conversion premium: | 2.68%
|
| Conversion price: | C$2.30
|
| Forced conversion: | If the average daily weighted trading price exceeds C$3.45 for any 10 consecutive days
|
| Put: | Upon a fundamental change
|
| Bookrunner: | Eight Capital
|
| Pricing date: | Jan. 12
|
| Settlement: | Feb. 2
|
| Distribution: | Registered in all provinces except Quebec
|
| Stock symbol: | TSX Venture: EMC
|
| Stock price: | C$2.24 at close on Jan. 11
|
| Market capitalization: | C$159.23 million
|
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