Company is selling one-year loan notes to Sun Avenue in two tranches
By Devika Patel
Knoxville, Tenn., Jan. 20 - Sunkar Resources plc said it agreed on Dec. 19 to sell $12.8 million of convertible loan notes to Sun Avenue Partners Corp. in a private placement. The deal will settle in two tranches of $2.8 million and $10 million; the first tranche settled on Jan. 17.
The notes mature Jan. 17, 2013 and are convertible into 174,476,283 ordinary shares at about 4.8p, a 59.6% discount to the closing price of the stock, 11.88p, on Jan. 19.
Settlement of the second tranche is expected March 12.
Proceeds will be used to pay existing trade creditors and provide funds for the company's working capital needs and capital expenditure requirements.
The phosphate mining company is based in London.
| Issuer: | Sunkar Resources plc
|
| Issue: | Convertible loan notes
|
| Amount: | $12.8 million
|
| Maturity: | Jan. 17, 2013
|
| Conversion price: | 4.8p (approximate)
|
| Conversion ratio: | Into 174,476,283 shares
|
| Warrants: | No
|
| Investor: | Sun Avenue Partners Corp.
|
| Pricing date: | Dec. 19
|
| Announcement date: | Jan. 20
|
| Settlement dates: | Jan. 17 (for $2.8 million), March 12 (for $10 million)
|
| Stock symbol: | London: SKR
|
| Stock price: | 11.88p at close Jan. 19
|
| Market capitalization: | £20 million
|
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