By Devika Patel
Knoxville, Tenn., April 1 - Nemi Northern Energy & Mining Inc. said it took in another C$1.73 million in a private placement of unsecured subordinated convertible debentures. The deal priced Feb. 21 for C$10 million with a C$3 million greenshoe, and the company raised C$11 million in the first closing on March 12. The company has raised a total of C$12.73 million from the notes sale.
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 LP.
Nemi Northern is a Vancouver, B.C.-based coal exploration company.
| Issuer: | Nemi Northern Energy & Mining Inc.
|
| Issue: | Unsecured subordinated convertible debentures
|
| Amount: | C$12,724,000 (including C$3 million greenshoe exercise)
|
| 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
|
| Settlement date: | March 12 (for C$10,999,000), April 1 (for C$1,725,000)
|
| Stock symbol: | Toronto: NNE.A
|
| Stock price: | C$0.80 at close Feb. 21
|
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