Orbite Announces Brokered Private Placement of up to $25 Million in Convertible Debentures
MONTREAL, QUEBEC--(Marketwire - Nov 30, 2012)-Orbite Aluminae Inc. (ORT.TO)(EORBF) ("Orbite" or the "Company") is pleased to announce its intention to complete a private placement of convertible debentures (the "Convertible Debentures") for an aggregate principal amount of up to $20,000,000 plus an over-allotment option of an additional $5,000,000 (the "Convertible Debentures Offering"), secured against the Company''s investment tax credits resulting from the construction of its HPA plant in Cap-Chat, Quebec. The Convertible Debentures Offering will allow the Company to monetize the refundable investment tax credits, which would otherwise remain idle on the Company''s balance sheet as an accounts receivable.
Euro Pacific Canada Inc. will be acting as lead agent and sole book-runner on the Convertible Debentures Offering for a syndicate that includes Mackie Research Capital Corporation and Roth Capital Partners LLC. The Convertible Debentures Offering is expected to close on or before December 13, 2012 (the "Closing Date"). The Company intends to use the proceeds from the Convertible Debentures Offering for general corporate purposes.
The Convertible Debentures bear interest at a rate of 8% per annum, calculated from their date of issue, to be paid quarterly in arrears, and have a maturity date of December 13, 2017 ("Maturity Date"). Furthermore, the Convertible Debentures are convertible, in whole at the option of the holder at any time prior to the Maturity Date into class "A" shares of the Company ("Common Shares") at a conversion price of $3.50 per Common Share ("Conversion Price"), being a conversion rate of approximately 286 Common Shares for each $1,000 principal amount of Debentures, subject to adjustment in accordance with the terms of the Convertible Debentures.
Completion of the Offering is subject to the satisfaction of certain conditions, including approval by the Toronto Stock Exchange.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
