Grenville Strategic Royalty (GRC-V) June 19, '14 has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, subject to regulatory approval, $15-million aggregate principal amount of convertible unsecured subordinated debentures at a price of $1,000 per debenture. The company has granted to the underwriters an overallotment option to purchase up to an additional $2.25-million aggregate principal amount of debentures at the same price, exercisable, in whole or in part, at any time for a period of up to 30 days following closing of the offering, to cover overallotments.
Grenville intends to use the net proceeds from the offering for the future purchase of revenue royalties in the company's target markets and for general corporate purposes.
The debentures will bear interest from the date of issue at 8 per cent per annum, payable semi-annually in arrears on Dec. 31 and June 30 each year commencing Dec. 31, 2014. The debentures will each have a maturity date of Dec. 31, 2019.
The debentures will be convertible at the holder's option, at any time prior to the close of business on the earlier of the maturity date and the business day immediately preceding the date specified by the company for redemption of the debentures into common shares, at a conversion price of 92 cents per common share, being a conversion rate of 1,086.9565 common shares for each $1,000 principal amount of debentures.
Closing of the offering is expected to occur on or about July 10, 2014. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and other securities regulatory authorities as applicable. |
