Howard,
Is it correct to assume that this is cheaper money than the loan that is being retired? The convertibles would be dilutive, above par, but does retiring the loan negate some other dilution that might have been associated with the loan? Do you know what I mean? I am basically asking if this is another increase in the shares outstanding?
Thanks.
Stuart.
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Unitec International Controls Corp
UIC
Shares issued 21,209,129 Aug 6 close
$0.29
Mon 10 Aug 98 News
Release
Mr. John Smyth reports
Unitec has arranged a $500,000 private financing, consisting of a
$300,000
convertible debenture and a $200,000 term loan. The debenture will
have a
two year term, convertible to shares at 40 cents in the first year and
at
45 cents in the second. The company has agreed to pay a bonus of
50,000
shares to the lender.
Proceeds will be used to retire an existing loan of $200,000 and
provide an
additional $300,000 to improve the company's working capital position
and
to accelerate production of in-house projects. The company currently
has an
order backlog of over $5-million, and is completing 14 projects in
Brazil,
Chile, St. Vincent, Malaysia and North America.
(c) Copyright 1998 Canjex Publishing Ltd.
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