Eve & Co (TSXV: EVE) has finally completed a financing that will enable it to keep the lights on for another quarter, with the company raising $550,000 via the issuance of convertible debentures. Debentures issued under the offering contain an interest rate of 10% per annum and consist of a two year term.
The financing will likely prove to be a drag on the equity, given that in the first year the debentures are convertable at a price of $0.06 per share. That figure rises to $0.10 in the second year. However, the prospects on a convert to equity were not enough to draw in investors, with the company being forced to issued 8.33 warrants for each $1.00 in debentures issued – equating to a significant warrant coverage being assigned to each debenture.
In total, 4.6 million warrants were issued in connection with the financing, with each warrant being valid for a period of two years following the date of issuance, while containing an exercise price of $0.06 per share.
The firms CEO Melinda Rombouts provided the lead order in the financing, placing $200,000 into the company herself.
Eve & Co last traded at $0.055 on the TSX Venture.
Information for this briefing was found via Sedar and Eve & Co Incorporated. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.