Investor Vertex receives three-year warrants for 160,417 common shares
By Devika Patel
Knoxville, Tenn., Feb. 20 - Conifex Power LP arranged a C$5 million private placement of promissory notes with Vertex One Asset Management Inc., according to a Tuesday press release from parent company Conifex Timber Inc.
The 12% notes will be due in one year. They may be redeemed after four months at par.
Vertex One also received warrants for 160,417 shares, which are each exercisable at C$9.50 for three years. The strike price is a 17.43% premium to the Feb. 15 closing share price of C$8.09.
Conifex Power intends to use the net proceeds primarily to fund its power project.
"This financing is a first step towards our objective of obtaining credit facilities to fund activity in our bioenergy segment," chief executive officer Ken Shields said in a press release. "We are also working to secure conventional credit facilities to fund inventories and receivables in our lumber segment, following which we plan to repay our C$12 million of 12% notes due at the end of 2013."
Based in Vancouver, B.C., Conifex engages in timber harvesting and forest management activities and makes lumber products.
| Issuer: | Conifex Power LP
|
| Issue: | Promissory notes
|
| Amount: | C$5 million
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Call: | Yes
|
| Warrants: | For 160,417 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$9.50
|
| Investor: | Vertex One Asset Management Inc.
|
| Pricing date: | Feb. 19
|
| Stock symbol: | TSX Venture: CFF
|
| Stock price: | C$8.09 at close Feb. 15
|
| Market capitalization: | C$154.39 million
|
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