Deal conducted by Notre-Dame Capital to fund general working capital
By Devika Patel
Knoxville, Tenn., May 5 - Preo Software Inc. said it concluded the third tranche of a private placement of convertible debentures, raising C$80,000 on May 4. The company took in C$640,000 on Feb. 24 and C$480,000 on March 28. It plans to raise up to C$2 million in the offering, which priced Oct. 19. Thus far, Preo has raised C$1.2 million.
The convertible debentures have a two-year term, maturing on Feb. 24, 2013, and accrue interest at 10% per year. Interest is payable quarterly. The debenture may be converted into common shares at C$0.40 per share, a 90.48% premium to the Oct. 18 closing share price of C$0.21.
The debentures will automatically convert if the company's common shares trade at C$0.60 or higher for 30 trading days.
The deal is being conducted by a syndicate of agents led by Notre-Dame Capital Inc. and including MGI Securities Inc.
Proceeds will be used for general working capital purposes.
"The recent addition of Supplies Network, following on multi-year agreements signed with Xerox and Toshiba America Business Solutions is clear indication that our channel distribution program is gaining significant momentum," company chief executive officer Gary McCone stated at pricing.
"This financing will solidify our ability to support these important relationships while being able to aggressively pursue new opportunities."
Based in Edmonton, Alta., Preo Software provides print management solutions.
| Issuer: | Preo Software Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$2 million
|
| Maturity: | Feb. 24, 2013
|
| Coupon: | 10%
|
| Conversion price: | C$0.40
|
| Call: | If common shares trade at C$0.60 or higher for 30 trading days
|
| Warrants: | No
|
| Agent: | Notre-Dame Capital Inc. (lead), MGI Securities Inc.
|
| Pricing date: | Oct. 19
|
| Settlement date: | Feb. 24 (for C$640,000), March 28 (for C$480,000), May 4 (for C$80,000)
|
| Stock symbol: | TSX Venture: PKM
|
| Stock price: | C$0.21 at close Oct. 18
|
| Market capitalization: | C$6.79 million
|
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