By Sheri Kasprzak
New York, May 9 - BSM Technologies Inc. has proposed a C$1.5 million private placement of convertible debentures.
The two-year debentures bear interest at 14% annually and are convertible into common shares at C$0.25 each.
The investors will receive one warrant for every C$0.625 in principal of debentures purchased. The warrants are exercisable at C$0.25 each for two years.
Also, BSM announced it will exchange C$827,098 in outstanding debt owed to controlling shareholder Nick Cirella for 3,596,080 common shares at C$0.23 each.
The proceeds from the PIPE will be used for working capital and general corporate purposes.
BSM, based in Mississauga, Ont., manufactures high-securing vehicle tracking and surveillance products used by law enforcement agents.
| Issuer: | BSM Technologies Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$1.5 million
|
| Maturity: | Two years
|
| Coupon: | 14%
|
| Price: | Par
|
| Yield: | 14%
|
| Conversion price: | C$0.25
|
| Warrants: | One warrant per C$0.625 in principal of debentures
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.25
|
| Pricing date: | May 9
|
| Stock symbol: | TSX Venture: GPS
|
| Stock price: | C$0.26 at close May 9
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