By Devika Patel
Knoxville, Tenn., Feb. 21 - Nemi Northern Energy & Mining Inc. said it will take in C$10 million from a private placement of unsecured subordinated convertible debentures.
The notes will carry a coupon of 8%, payable semiannually in arrears. They will mature in five years and are convertible into common shares at any time at C$0.90 per share.
After two years, the company has the right to redeem the debentures in whole or in part. In addition, the company has the right to repay the principal amount of the debentures in common shares at a price equal to 95% of the weighted average trading price of the company's shares on the Toronto Stock Exchange for the 20 trading day period ending five trading days prior to the date fixed for redemption or at maturity.
Canaccord Capital Corp. is the agent.
Proceeds will be used to fund the company's obligations on the Peace River Coal Limited Partnership.
Nemi Northern is a Vancouver, B.C.-based coal exploration company.
| Issuer: | Nemi Northern Energy & Mining Inc.
|
| Issue: | Unsecured subordinated convertible debentures
|
| Amount: | C$10 million
|
| Maturity: | Five years
|
| Coupon: | 8%, payable semiannually in arrears
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$0.90
|
| Warrants: | No
|
| Agent: | Canaccord Capital Corp.
|
| Pricing date: | Feb. 21
|
| Stock symbol: | Toronto: NNE.A
|
| Stock price: | C$0.80 at close Feb. 21
|
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