Each unit consists of C$1,000 convertibles, warrants for 1,610 shares
By Devika Patel
Knoxville, Tenn., May 11 – Gabriel Resources Ltd. said it raised C$20 million in a non-brokered private placement of units. The deal priced on March 29.
The company sold 20,000 units at C$1,000 per unit. Each unit consists of C$1,000 of 0% convertible subordinated notes and warrants for 1,610 common shares, along with one arbitration value right.
The notes, which will mature June 30, 2021, are convertible into common shares at C$0.3105 per share. The conversion price is a 47.86% premium to the closing share price of C$0.21 on March 28 and a 35% premium to the volume-weighted average closing share price for 30 days prior to March 29, the company said in a press release.
Each warrant is exercisable until June 30, 2021 at C$0.46, a 119.05% premium to the March 28 closing share price.
Each arbitration value right will entitle the holder to a pro rata proportion of 7.5% of any funds received by the company from its arbitration claim against Romania.
Proceeds will be used for the arbitration and general working capital requirements.
Toronto-based Gabriel is a Romania-focused gold and silver explorer.
| Issuer: | Gabriel Resources Ltd.
|
| Issue: | Units of C$1,000 of convertible subordinated notes, warrants for 1,610 common shares and one arbitration value right
|
| Amount: | C$20 million
|
| Units: | 20,000
|
| Price: | C$1,000
|
| Note maturity: | June 30, 2021
|
| Note coupon: | 0%
|
| Note conversion price: | C$0.3105
|
| Warrants: | Warrants for 1,610 shares per unit
|
| Warrant expiration: | June 30, 2021
|
| Warrant strike price: | C$0.46
|
| Agent: | Non-brokered
|
| Pricing date: | March 29
|
| Settlement date: | May 11
|
| Stock symbol: | Toronto: GBU
|
| Stock price: | C$0.21 at close March 28
|
| Market capitalization: | C$78.75 million
|
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