Options included in sale with four investors; deal to settle in 2015
By Devika Patel
Knoxville, Tenn., May 6 - Brazil Minerals, Inc. negotiated a $500,000 private placement of diamonds and stock with four investors on April 30, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal will settle by Dec. 31, 2015.
The company will sell diamonds of at least 0.4 carats, 3.75 million common shares and options for 1,875,000 shares.
The company agreed to pledge 8 million shares with third-party collateral agents for the buyers in order to secure the delivery of the diamonds. The number of shares pledged is subject to periodic adjustment as diamonds are delivered and as the market price of the company's stock may change.
The options are each exercisable at $0.12 for two years. The strike price reflects a 33.33% premium to the April 29 closing share price of $0.09.
Brazil Minerals is a Beverly Hills, Calif.-based company that owns a 55% interest in Mineracao Duas Barras Ltda., a Brazilian producer of rough diamonds and gold, and explores and develops mineral properties in Brazil.
| Issuer: | Brazil Minerals, Inc.
|
| Issue: | Diamonds, common shares
|
| Amount: | $500,000
|
| Shares: | 3.75 million
|
| Options: | For 1,875,000 shares
|
| Option expiration: | Two years
|
| Option strike price: | $0.12
|
| Pricing date: | April 30
|
| Settlement date: | By Dec. 31, 2015
|
| Stock symbol: | OTCBB: BMIX
|
| Stock price: | $0.09 at close April 29
|
| Market capitalization: | $6.15 million
|
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