Greystar raises $1.9-million; extends loan payment date
2004-06-04 09:04 ET - News Release
Mr. Dave Rovig reports
GREYSTAR CLOSES $1.9 MILLION FINANCING AND EXTENSION OF $2.0 MILLION LOAN
Greystar Resources Ltd. has closed its previously announced $1.9-million private placement to funds managed by RAB Capital, a London Stock Exchange-listed pan-European hedge fund manager. Under the financing, one million units of the company were issued at a price of $1.90 per unit. Each unit consists of one common share and one-half share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share for a period of 24 months at a price of $2.50 per share.
Ocean Equities Ltd., of London, England, was paid a cash fee equal to 5 per cent of the proceeds in connection with the placement and was issued brokers warrants to purchase 50,000 common shares on the same terms as the unit warrants.
In addition, the company's working capital position has improved by $2-million with Belle Isle Investments Ltd.'s agreement to extend the date for payment of its $2-million loan and accrued interest from June 15, 2004, to June 15, 2006, subject to issuance of a convertible promissory note giving Belle Isle the right to convert all or part of the loan into the company's common shares at a price of $2.50 per share and a reduction in the rate of simple interest payable on the loan from 0.5 per cent per month to 3 per cent per year, effective June 15, 2004. The transaction is subject to acceptance by the Toronto Stock Exchange.
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