Japan Gold Announces US$1 Million Convertible Debenture Financing; Shares up 5.8%
Japan Gold (JG.V) on Friday said it will raise US$1 million from a private placement of unsecured convertible debenture for gross proceeds of US$1 million to Equinox Partners Investment Management, a strategic investor and major shareholder of the company.The three-year debenture bears an interest rate of 10% per year, accruing daily but payable in cash only at the maturity date, on the occurrence of an event of default or upon an early redemption, stated the company.The company will have the right, at its option, to make an early redemption in cash of all or any part of the principal amount together with payment of any accrued but unpaid interest, said the company."In addition, the company will have the right, at its election, to satisfy its obligation to pay cash to the debenture holder through the delivery of common shares of the company in lieu of cash, at a price per share which equals the greater of: (i) the most recent market price of the shares on the TSX Venture Exchange on the date that the accrued interest becomes payable; (ii) $0.11; and (iii) a price per security or conversion price of debt securities in a future financing event," stated the company.The net proceeds will be used for general working capital purposes, said the company.Equinox holds a 29.32% stake in Japan Gold.The company's shares were last seen up C$0.005 to C$0.09 on the TSX Venture Exchange.