Company also announces resignation of board of directors member
By Devika Patel
Knoxville, Tenn., Aug. 29 - Niocan Inc. said it again revised the terms of a private placement of units with lead investor Nio-Metals Holdings LLC. The deal priced for between C$2 million and C$4 million on June 29 and was revised to raise at least C$3 million on Aug. 19. The company now will raise C$3 million.
The company will sell 3,005 units of one C$1,000 12% debenture and 520 warrants at C$1,000.00 per unit. Nio-Metals will purchase 1,750 units, and other investors have signed subscription agreements for 455 units. Niocan expects further investors to purchase an additional 800 units.
Each one-year debenture may be converted to shares at C$1.45 per common share. Niocan may redeem the debentures prior to maturity at 105.
Each warrant is exercisable at C$1.45 for three years. The strike price and conversion price is a 20.83% premium to the June 28 closing share price of C$1.20.
Previously, the debentures carried a 10% coupon, each unit had only 370 two-year warrants, and the warrants would have expired in two years.
Settlement is expected Sept. 2. Nio-Metals may also nominate one member of the company's board of directors. The company also announced that Lars-Eric Johansson resigned from the board of directors effective Monday.
Niocan is a Montreal-based niobium exploration company.
| Issuer: | Niocan Inc.
|
| Issue: | Units of one C$1,000 principal amount of debenture and 520 warrants
|
| Amount: | C$3,005,000
|
| Units: | 3,005
|
| Price: | C$1,000
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Call: | At 105
|
| Conversion price: | C$1.45
|
| Warrants: | 520 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.45
|
| Investor: | Nio-Metals Holdings LLC (lead)
|
| Pricing date: | June 29
|
| Revised: | Aug. 19, Aug. 29
|
| Settlement date: | Sept. 2
|
| Stock symbol: | Toronto: NIO
|
| Stock price: | C$1.20 at close June 29
|
| Market capitalization: | C$18.9 million
|
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