More shares issued to fund managed by GEMS Investment It has to mean something when GEMS accepts shares as 2.5 of the 7 percent of the interest payment.
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Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSX.V: PEH) today announced it will issue 1,068,188 new Ordinary Shares of Primeline (“Shares”) to GRF Prime Limited (“GRF”).
The Shares are payment of a portion of interest accrued on US$18,000,000 principal amount Convertible Bonds (“Bonds”) issued to GRF, a resources fund managed by GEMS Investment Management Limited 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 CAD$0.14 per Share, which is equal to the higher of the closing price of the Shares on the day before, and the volume-weighted average TSX-V trading price of the Shares for the ten days preceding, the interest payment date of March 15, 2016.
Upon completion of the issue, GRF will own 5,101,491 Shares, representing approximately 2.8% of the Company’s 183,780,895 Shares issued and outstanding.