Cobalt Coal Ltd. Announces the Private Placement oCobalt Coal Ltd.
TSX VENTURE : CCF
March 21, 2012 16:40 ET
Cobalt Coal Ltd. Announces the Private Placement of Convertible Debentures
CALGARY, ALBERTA--(Marketwire - March 21, 2012) - Cobalt Coal Ltd. (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") is pleased to announce that it intends to complete a non-brokered private placement of up to $1,000,000 of convertible redeemable debentures (the "Debentures"), which will mature 24 months from the date of issuance (the "Maturity Date") and will bear interest at a rate of 12% per annum payable on the Maturity Date (the "Debenture Offering").
The Debentures will be convertible, by either the holder or the Corporation, into units (the "Units") of the Corporation at a conversion rate of
.15 principal amount of Debenture per Unit. Each Unit will be comprised of one common share in the capital of Cobalt and one common share purchase warrant (a "Warrant"). Each Warrant is subject to vesting conditions and will entitle the holder to acquire one common share at
.20 per share of Cobalt for a period of two years from the closing of the Debenture Offering, subject to regulatory approval.
The Corporation intends to use the proceeds from the Debenture Offering for general working capital purposes and for the payment of expenses related to the proposed acquisitions of Cobalt, as previously announced on March 8, 2012.
The Debenture Offering is subject to the approval of the TSX Venture Exchange Inc. Pursuant to applicable securities laws, all securities issued pursuant to the Debenture Offering will be subject to a hold period of four months following the closing of the Debenture Offering. Certain directors and pfficers of Cobalt may subscribe for Debentures pursuant to the Debenture Offering.