12% convertibles are due in three years, convert at C$0.10 per share
By Devika Patel
Knoxville, Tenn., Sept. 27 - Altima Resources Ltd. said it will raise C$11.04 million in the final tranche of a C$15 million private placement of convertible debentures by Dec. 15. VSA Capital Ltd. arranged the sale, which priced on June 8 and raised C$3.96 million on Aug. 29.
The convertibles mature June 30, 2015 and accrue interest at 12% per year. They may be converted into common shares at C$0.10 per share, a 100% premium to the June 7 closing share price of C$0.05.
The debentures may be prepaid, and the company may force conversion.
As part of the first tranche, $2.97 million of existing debt held by H&M Chambers Energy LLC was replaced by an equal amount of debentures, and, as a result, the first tranche of the private placement raised new proceeds of C$985,000.
Proceeds will be used for drilling and development of oil and gas wells on the company's assets.
Based in Vancouver, B.C., Altima is an oil and gas exploration company.
| Issuer: | Altima Resources Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$15 million
|
| Maturity: | June 30, 2015
|
| Coupon: | 12%
|
| Conversion price: | C$0.10
|
| Conversion premium: | 100%
|
| Call: | Yes
|
| Warrants: | No
|
| Agent: | VSA Capital Ltd.
|
| Pricing date: | June 8
|
| Settlement dates: | Aug. 29 (for C$3,956,811), Dec. 15 (for C$11,043,189)
|
| Stock symbol: | TSX Venture: ARH
|
| Stock price: | C$0.05 at close June 7
|
| Market capitalization: | C$11.61 million
|
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