Notes convert at a 24% premium, interest payable at maturity
By Tali Rackner
Norfolk, Va., April 7 – Burcon NutraScience Corp. priced C$2 million of 8% convertible bonds to Large Scale Investments Ltd.
The bonds have a conversion price of C$4.01, according to a release.
The conversion price is a 24% premium over the volume weighted average trading price of the company’s common shares, which was calculated using the five trading days immediately before Thursday.
Interest is calculated daily, compounded monthly and will be payable on the earlier of three years from the date of issue, the occurrence of an event of default and voluntary prepayment by Burcon.
The lender may convert the principal amount in whole or in part into common shares in the capital of Burcon at any time beginning July 1.
Net proceeds will be used for continued research and development of Burcon’s protein extraction and purification technologies, commercialization of its pea protein technology, continued work on its intellectual property portfolio and general corporate purposes.
The new convertibles are expected to be listed on the Toronto Stock Exchange.
The Vancouver, B.C., company develops protein extraction and purification technology and plant-based proteins.
| Issuer: | Burcon NutraScience Corp.
|
| Issue: | Convertible notes
|
| Amount: | C$2 million
|
| Lender: | Large Scale Investments Ltd.
|
| Coupon: | 8%
|
| Conversion price: | C$4.01
|
| Conversion premium: | 24%
|
| Warrants: | None
|
| Pricing date: | April 7
|
| Stock symbol: | TSX: BU
|
| Stock reference price: | C$3.10 at close on April 6
|
| Market capitalization: | C$115.3 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
