By Laura Lutz
Washington, Jan. 30 - Diaz Resources Ltd. agreed to conduct a private placement of convertible unsecured subordinated debentures for up to C$10 million.
Research Capital Corp., the agent for the deal, has a greenshoe for up to C$5 million additional principal amount of the debentures.
The 8.75% debentures will pay interest semi-annually beginning on June 30, 2007. They will mature five years and one day after the closing date of the placement.
The debentures will be convertible at C$1.00 per share at any time.
Diaz will have the right to call the debentures after two years if the company's shares trade above a certain price, which has not been announced.
Proceeds will be used for exploration and development.
Settlement is expected on Feb. 28, subject to conditions including regulatory approvals.
Diaz is a Calgary, Alta.-based oil and gas exploration company.
| Issuer: | Diaz Resources Ltd.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$10 million
|
| Greenshoe: | For C$5 million
|
| Maturity: | Five years and one day
|
| Coupon: | 8.75%
|
| Price: | Par
|
| Yield: | 8.75%
|
| Conversion price: | C$1.00
|
| Warrants: | No
|
| Agent: | Research Capital Corp.
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 28
|
| Stock symbol: | Toronto: DZR
|
| Stock price: | C$0.79 at close Jan. 29
|
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