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Bullboard - Stock Discussion Forum Cobalt Coal Ltd. V.CCF

Explores and produces coal

TSXV:CCF - Post Discussion

Cobalt Coal Ltd. > CCF arranges $1-million debenture offering
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Post by statsman1 on Feb 10, 2012 7:56pm

CCF arranges $1-million debenture offering

fyi...

Source: https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aCCF-1925922&symbol=CCF&region=C

Cobalt Coal arranges $1-million debenture offering

2012-02-10 16:42 PT - News Release

Mr. Al Kroontje reports

COBALT COAL LTD. ANNOUNCES THE TSX-V PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Cobalt Coal Ltd. (formerly Cobalt Coal Corp.) intends to complete a private placement of up to $1-million of convertible redeemable debentures, which will mature 24 months from the date of issuance and will bear interest at a rate of 12 per cent per year, payable on the maturity date.

The debentures will be convertible into units, with each unit comprising one common share of the corporation and one warrant, containing certain vesting conditions, to acquire a common share of the corporation at an exercise price of 20 cents, on the basis of 6,666 units per $1,000 principal amount of debentures and interest, subject to regulatory approval.

The corporation intends to use the proceeds from the debenture offering to pursue acquisition opportunities for the corporation, for general working capital and the for payment of expenses related to the debenture offering.

The debenture offering is subject to the approval of the TSX Venture Exchange. 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.

We seek Safe Harbor.

Comment by shellfish1 on Feb 13, 2012 1:15am
They just did a pp of about 6M in the past, and are supposed to complete restructure thereafter.  Why this additional pp? Does that means the company hasn't done anything about the restructure and is therefore still loosign money, or the management wants to take advantage of the shareholers value?    This debenture sounds pretty farmiliar. The previous senior lenders have ...more  
Comment by stuckinonoway on Feb 27, 2012 6:16pm
the pps were to pay off the bank before being forced into bankruptcy and most likely to pay wages. the debs are famaliar-the holders know that if they don't recieve their interest payments they'll get paid with cheap paper for debt. i think management got in over their head here and thought running an old mine was going to be easy. there is more to it than the spot price of coal. glta
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