Frustrated...and roll back 5 to 1
MBMI to raise $1.5-million, roll back shares 5 to 1
2012-02-09 15:46 ET - News Release
Mr. John Wong reports
MBMI ANNOUNCES PROPOSED CONVERTIBLE DEBENTURE FINANCING AND SHARE CONSOLIDATION
MBMI Resources Inc. has arranged a proposed private placement of convertible debentures with a total principal amount of up to $1.5-million and a proposed consolidation of the common shares of the company on a 5-to-1 basis, whereby one new common share would be issued in exchange for every five preconsolidation common shares outstanding. The debentures, which will be unsecured, will accrue interest at a rate of 12 per cent per annum and will mature one year after issuance. Following the completion of the share consolidation, the principal amount of the debentures would be convertible at the option of the holder into units at a deemed price of 10 cents per unit. The share consolidation is subject to the approval of the company's shareholders and the TSX Venture Exchange. The company anticipates that the share consolidation will be proposed to shareholders for approval at the company's next shareholders' meeting.
Each unit would comprise one common share of the company and one-half of one warrant, each whole warrant being exercisable for one common share at a price of 12 cents per share for a period of one year after the share consolidation.
Finders or agents may be entitled to receive finders' fees of up to 8 per cent of the principal of the debentures placed by finders payable in shares with a deemed price of five cents per share and a number of finders' warrants equal to the number of finders' shares issued. Each finder's warrant would be exercisable to acquire, for a term of one year after the share consolidation, one common share at a price of 12 cents per share.
The conversion price per unit, and exercise price of the warrants and finders' warrants are based on the share consolidation being completed on a 5-to-1 basis. If the share consolidation is completed at a different consolidation ratio, the conversion price and warrant exercise prices will be adjusted accordingly.
The private placement is subject to the approval of the TSX Venture Exchange.
For further information relating to the company or this release, please refer to the company's websiand