KWG Resources $1,033,398 (U.S.) debenture financing

2009-04-20 17:28 ET - Private Placement - Debenture

The TSX Venture Exchange has accepted for filing the documentation with respect to a non-brokered private placement by way of a convertible debenture as announced on Jan. 21, 2009.

Convertible debenture: $1,033,398 (U.S.)

Conversion price: Convertible into units at 4.8894 U.S. cents per unit, with each unit including one common share and approximately 0.44 of a common share purchase warrant of the company

Maturity date: Debenture is convertible only upon the shareholder approval to the issuance of the units upon conversion of the debenture having been obtained; the company has obtained the required shareholder approval and the convertible debenture has been fully converted

Warrants: 9,310,839 share purchase warrants to purchase 9,310,839 shares at a price of five U.S. cents per share during the first year following the closing of the private placement and 10 U.S. cents per share until expiry (each warrant is exercisable for a period of 20 business days following the issuance by the company of five common shares upon the exercise of any of the warrants, options and other rights or obligations of the company to issue common shares that are outstanding as at Jan. 20, 2009, and warrants expire, in any event, no later than March 16, 2014)

Interest rate: Nil

Hidden placee: One hidden placee participated