Business
BSM Announces Closing of $2,650,000 Convertible Debenture Financing
BSM Announces Closing of $2,650,000 Convertible Debenture Financing
About this update from Great Plains Metals Corp.
[{"type":"text","content":"BSM Announces Closing of $2,650,000 Convertible Debenture Financing\n\n\n\nBSM Announces Closing of $2,650,000 Convertible Debenture Financing\n\nMississauga, Ontario CANADA, July 03, 2008 /FSC/ - BSM Technologies Inc. (GPS - TSX Venture), (\"BSM\" or the \"Company\"), (http://www.bsmtechnologies.com)a leading provider of high security vehicle tracking and surveillance solutions, announces that it has completed a $2,650,000 convertible debenture (\"New Debentures\") financing and amended the terms of $800,000 (\"Reconstituted Debentures\") of the $1,300,000 outstanding debentures (the \"Outstanding Debentures\") (collectively, the \"Financing\"). \n\nFinancing\nThe New Debentures have a term of two (2) years and are convertible into common shares of the Company at the rate of one common share for each $0.06 of debt converted. The Convertible Debentures are secured against the assets and undertaking of the Company (including security over all subsidiaries of the Company) and bear interest at the rate of 14% per year. The subscribers received warrants to acquire common shares of the Company equal in number to the number of common shares convertible upon exercise of the conversion feature of the New Debentures. Each Warrant is exercisable at $0.10 to acquire a further common share for two (2) years from closing. $500,000 of the funds from the New Debentures will be used to repay $500,000 of the Outstanding Debentures with the balance used for working capital.\n\n$300,000 of the Outstanding Debentures was replaced with Reconstituted Debentures on the same terms as the New Debentures. $500,000 of the Outstanding Debentures, held by Company Insiders (\"Insiders\"), was replaced with Reconstituted Debentures at a conversion rate of one common share for each $0.07 of debt converted and the Insiders also received warrants to acquire common shares of the Company equal in number to the number of common shares convertible upon exercise of the conversion feature of the Reconstituted Debentures.\n\nThe Debentures' and Warrants' underlying securities will be restricted from trading until October 31, 2008, with respect to $2,350,000 of the Financing, and until November 3, with respect to the remaining $300,000 of the Financing. \n\nManagement and Board Change\nNick Cirella has retired as C.E.O. and Al...