By Laura Lutz
Des Moines, Jan. 16 - Brainhunter Inc. announced plans for a private placement of convertible notes for C$2 million.
The 10% convertible notes mature in two years.
The notes will be convertible into common shares at C$0.75 per share.
At the noteholders' option, interest may be paid quarterly in shares issued at the volume weighted average trading price of the stock during the last 20 trading days before the end of that quarter. Otherwise, investors may choose to have interest in cash accrued and compounded monthly, payable at maturity or when the notes are redeemed.
The investors also received warrants for 500 shares for each $1,000 of notes. The warrants are exercisable at C$0.60 for two years.
Brainhunter may redeem the convertibles at any time.
Management and insiders of the company have committed to purchase about 75% of the placement.
Settlement is required by Jan. 30 for regulatory approval.
Proceeds will be used for working capital.
Based in Toronto, Brainhunter produces human resources software.
| Issuer: | Brainhunter Inc.
|
| Issue: | Convertible notes
|
| Amount: | C$2 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.75
|
| Warrants: | For 1 million shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60
|
| Pricing date: | Jan. 15
|
| Stock symbol: | Toronto: BH
|
| Stock price: | C$0.50 at close Jan. 15
|
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