By Laura Lutz
Des Moines, March 14 - Diaz Resources Ltd. decreased the conversion price on C$10 million of convertible unsecured subordinated debentures that the company plans to sell in a private placement.
The debentures will now be convertible at C$0.90 per share, down from C$1.00 when the deal priced on Jan. 30.
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.
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 March 22, 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$0.90
|
| Warrants: | No
|
| Agent: | Research Capital Corp.
|
| Pricing date: | Jan. 30
|
| Amended: | March 14
|
| Settlement date: | March 22
|
| Stock symbol: | Toronto: DZR
|
| Stock price: | C$0.79 at close Jan. 29
|
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