By Laura Lutz
Des Moines, March 27 - Diaz Resources Ltd. settled a downsized private placement of convertible unsecured subordinated debentures for C$7.085 million.
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 are convertible at C$0.90 per share.
The conversion price was set at C$1.00 when the deal priced on Jan. 30. It was lowered on March 14.
The offering originally priced as a C$10 million placement with a C$5 million greenshoe.
Of the debentures, C$625,000 principal amount is being held in escrow, subject to receipt of final subscriber documentation that is expected by April 16.
Research Capital Corp. was the agent for the deal.
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.
Diaz is a Calgary, Alta.-based oil and gas exploration company.
| Issuer: | Diaz Resources Ltd.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$7.085 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 27
|
| Stock symbol: | Toronto: DZR
|
| Stock price: | C$0.79 at close Jan. 29
|
| Stock price: | C$0.71 at close March 14
|
| Stock price: | C$0.68 at close March 26
|
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