Brokered offering through Wildlaw Capital aims to fund working capital
By Devika Patel
Knoxville, Tenn., Dec. 16 - NXA Inc. said it has settled the first tranche and increased a private placement of debentures. The deal, which is being conducted through agent Wildlaw Capital Markets Inc., priced for C$1 million on Oct. 20 and was revised on Nov. 22. NXA raised C$720,000 in the initial tranche, and the deal has been increased to C$1.2 million.
The company is now selling 1,200 units at C$1,000 per unit. It sold 720 units in the first tranche. The units consist of one C$1,000 two-year 10% unsecured convertible debenture and 5,000 warrants.
The debentures now convert into common stock at C$0.10 per share. The conversion price represents a 900% premium to the closing share price of C$0.01 on Oct. 19.
The two-year warrants are exercisable at C$0.15, also a 1,400% premium to the Oct. 19 closing price.
Settlement of the entire deal is expected Jan. 31.
Proceeds will be used primarily for working capital and general corporate purposes.
NXA is a mineral exploration company based in Toronto.
| Issuer: | NXA Inc.
|
| Issue: | Units of C$1,000 in unsecured convertible debentures and 5,000 warrants
|
| Amount: | C$1.2 million
|
| Units: | 1,200
|
| Price: | C$1,000
|
| Warrants: | 5,000 warrants per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.10 in the first six months, C$0.12 thereafter
|
| Agent: | Wildlaw Capital Markets Inc.
|
| Pricing date: | Oct. 20
|
| Revised: | Nov. 22
|
| Upsized: | Dec. 16
|
| Settlement date: | Dec. 16 (for C$720,000), Jan. 31
|
| Stock symbol: | TSX Venture: NXI
|
| Stock price: | C$0.01 at close Oct. 20
|
| Market capitalization: | C$701.51 million
|
|
|
| Debenture
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Yield: | 10%
|
| Conversion price: | C$0.10
|
| Conversion premium: | 900%
|
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