Company sells 10% secured subordinated convertible debentures in deal
By Devika Patel
Knoxville, Tenn., July 3 - Crailar Technologies Inc. said it has received commitments for a C$5 million non-brokered private placement of 10% three-year secured convertible debentures. The deal was announced on Feb. 12, when the company said it planned to raise between C$3 million and C$5 million.
The debentures will be sold in C$1,000 increments and convert to common stock at a conversion price of C$2.00, which is a 60% premium to C$1.25, the July 2 closing share price. The notes may be redeemed after two years.
Investors will also receive 800 warrants for each C$1,000 invested. Each warrant is exercisable at C$1.25 for three years. The strike price is identical to the July 2 closing share price.
Settlement is expected July 11.
Proceeds will be used for the company's capital program and general corporate purposes.
The Victoria, B.C., company has developed technologies targeted at the textile, pulping, composite and plastics industries.
| Issuer: | Crailar Technologies Inc.
|
| Issue: | Secured convertible debenture
|
| Amount: | C$5 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Conversion price: | C$2.00
|
| Conversion premium: | 60%
|
| Call: | After two years
|
| Warrants: | 800 warrants for each C$1,000 invested
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.25
|
| Agent: | Non-brokered
|
| Announcement date: | Feb. 12
|
| Pricing date: | July 3
|
| Settlement date: | July 11
|
| Stock symbol: | TSX Venture: CL
|
| Stock price: | C$1.25 at close July 2
|
| Market capitalization: | C$57.81 million
|
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