- Emergia Inc. (EMER) has completed the second tranche of a private placement of up to $5 million of convertible debentures
- The debentures bear interest at the rate of 8 per cent per year, accruing in arrears, payable semi-annually in cash or in Class A common shares issuable at a price equal to 10-day average closing price of the shares prior to the applicable interest payment date less 15 per cent
- Emergia also announces that it has filed its unaudited interim condensed financial statements, management’s discussion and analysis and related certifications for quarter three
- Highlights from the quarter include a significant reduction of the short-term debt through new equity and debt conversion in shares and convertible debentures with standard terms and conditions and through conversion of short-term debt in long-term debt by current lenders; Since the beginning of 2020, it managed to reduce the short-term debt from $62.6 million to $16.4 million
- Emergia Inc. (EMER) is unchanged trading at $0.90 per share as of 6:51 a.m. EST
Emergia Inc. (EMER) has completed the second tranche of its private placement of up to $5 million of convertible debentures.
The first tranche generated gross proceeds of $2 million and the second tranche generated proceeds of $1 million for a total of $3 million.
The debentures bear interest at the rate of 8 per cent per year, accruing in arrears, payable semi-annually in cash or in Class A common shares issuable at a price equal to the 10-day average closing price of the shares prior to the applicable interest payment date less than 15 per cent.
The debentures are convertible at the holder’s option into one unit at a conversion price of $0.85.
Each unit is composed of one share and two warrants.
A warrant of Emergia entitles the holder to purchase one share at a price of $1.25 per share until October 31, 2023, and a warrant entitling the holder to purchase one share at a price of $1.50 until October 31, 2024.
If during the term of the debentures, the volume-weighted trading price of the shares for the last 20 days on the CSE is equal to, or greater than $1.50 per share, Emergia may force the conversion of the debentures into units.
Emergia also announces that it has filed its unaudited interim condensed financial statements, management’s discussion and analysis and related certifications for quarter three.
Highlights from the quarter include:
- Significant reduction of the short-term debt through new equity and debt conversion in shares and convertible debentures with standard terms and conditions and through conversion of short-term debt in long-term debt by current lenders; Since the beginning of 2020, Emergia managed to reduce the short-term debt from $62.6 million to $16.4 million
- Closing of $13.2 million in private placement, comprising debt conversion and cash, between July 2020 and today
- Disposing of assets that did not fit in Emergia’s business model
- Expending Emergia’s operations in Ontario by acquiring a 100-acre land in Alliston, which is expected to generate significant value, and ensuring its expansion
- Creating a joint venture to ensure an early development of Emergia’s project in Dorval
Emergia Inc. (EMER) is unchanged trading at $0.90 per share as of 6:51 a.m. EST.