Brokered offering through Wildlaw Capital aims to fund working capital
By Devika Patel
Knoxville, Tenn., Dec. 16 - NXA Inc. said it has settled the second and final tranche of a private placement of debentures. The deal, which was 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 increased the offering to C$1.2 million on Dec. 16. It raised C$366,000 in this tranche.
The company sold 1,086 units at C$1,000.00 per unit. It sold 720 units in the first tranche and 366 units in the second. The units consist of one C$1,000.00 two-year 10% unsecured convertible debenture and 5,000 warrants.
The debentures 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.
Proceeds will be used primarily for working capital and general corporate purposes.
NXA is a mineral exploration company based in Toronto.
Issuer: | NXA Inc.
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Issue: | Units of C$1,000.00 in unsecured convertible debentures and 5,000 warrants
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Amount: | C$1,086,000
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Units: | 1,086
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Price: | C$1,000.00
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Warrants: | 5,000 warrants per unit
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Warrant expiration: | Two years
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Warrant strike price: | C$0.15
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Agent: | Wildlaw Capital Markets Inc.
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Pricing date: | Oct. 20
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Revised: | Nov. 22
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Upsized: | Dec. 16
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Settlement dates: | Dec. 16 (for C$720,000), Feb. 28 (for C$366,000)
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Stock symbol: | TSX Venture: NXI
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Stock price: | C$0.01 at close Oct. 20
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Market capitalization: | C$2.1 million
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Debenture
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Maturity: | Two years
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Coupon: | 10%
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Price: | Par of C$1,000
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Yield: | 10%
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Conversion price: | C$0.10
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Conversion premium: | 900%
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