Units comprised of two-year 13% convertible debenture and 10 warrants
By Devika Patel
Knoxville, Tenn., May 25 - Golconda Resources Ltd. said it raised C$200,000 in the first and second tranches of a C$1 million non-brokered private placement of units. The deal priced April 27.
The company is selling 1 million units at C$1.00 apiece, with each unit consisting of a C$1.00 two-year 13% convertible unsecured debenture and 10 warrants. Each debenture converts to common stock at C$0.10 per share.
The warrants are each exercisable at C$0.10 for two years. The debenture conversion price and warrant strike price are a 100% premium to the April 26 closing share price of C$0.05.
In the first and second tranches, Golconda sold 200,000 units.
Proceeds will be used for general working capital purposes.
Calgary, Alta.-based Golconda is a gold and silver exploration company.
| Issuer: | Golconda Resources Ltd.
|
| Issue: | Units of a C$1.00 two-year 13% convertible unsecured debenture and 10 warrants
|
| Amount: | C$1 million
|
| Units: | 1 million
|
| Price: | C$1.00
|
| Maturity: | Two years
|
| Coupon: | 13%
|
| Conversion price: | C$0.10
|
| Warrants: | 10 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Pricing date: | April 27
|
| Settlement date: | May 25 (for C$200,000)
|
| Stock symbol: | TSX Venture: GA
|
| Stock price: | C$0.05 at close April 26
|
| Market capitalization: | C$5.34 million
|
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