The shares are payment of a portion of interest accrued on $18mln principal amount convertible bonds issued to GRF, a resources fund managed by GEMS Investment Management Ltd. of Hong Kong. Interest is payable on the bonds quarterly at 7% per annum, of which 4.5% is payable in cash and 2.5% in shares.
The shares will be issued at a deemed price of 23.5 cents per share, yesterday’s closing TSX Venture Exchange price.
Upon completion of the issue, GRF will own 10,923,945 shares, representing approximately 5.8% of the company’s 189,265,244 shares issued and outstanding.
Story by ProactiveInvestors