Wildpack Beverage (TSXV: CANS) is evidently in need of further funds. The company last night revealed it will be conducting an overnight marketed public offering of convertible debenture units, in what has become an absolute debacle of a financing.
The company intends to raise gross proceeds of up to $5.0 million under the offering. Debentures are set to contain an interest rate of 8% per annum, and be unsecured with a four year term. The debentures are also set to come with 500 common share purchase warrants, which are to be valid for a period of two years.
The conversion price of the debentures, as well as the exercise price of the warrants, have yet to be determined. An over-allotment option however has been granted.
Proceeds from the offering are to be used for the purchase of strategic canning-related businesses within the US, as well as as capital expenditures and general working capital purposes.
The financing however has become a complete debacle, with the company first announcing an overnight marketed offering on March 21. That offering was looking to offer up to $10 million in convertible debt units under relatively the same terms.
The next day, the company announced that it would instead be conducting a non-brokered private placement for just $2.5 million in convertible debt, with units converting at $1.00 per share, and warrants at $1.50 per share – an entirely ridiculous price considering the equity’s closing price of $0.38 on March 21. That offering has now again been cancelled, in favour of the current overnight marketed offering.
Humorously, the financing follows an announcement on February 28, wherein the company indicated it was going to launch a normal course issuer bid, to repurchase up to 5% of outstanding common shares.
Final terms of this financing have yet to be provided.
Wildpack Beverage last traded at $0.37 per share.
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