Business
Jaguar Reports Majority of Convertible Debenture Holders Elect to Convert to Common Shares; Company Strengthens its Balance Sheet
Jaguar Reports Majority of Convertible Debenture Holders Elect to Convert to Common Shares...
About this update from Jaguar Mining Inc.
[{"type":"text","content":"\n\n\n\nJaguar Reports Majority of Convertible Debenture Holders Elect to Convert to Common Shares; Company Strengthens its Balance Sheet\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nJaguar Reports Majority of Convertible Debenture Holders Elect to Convert to Common Shares; Company Strengthens its Balance Sheet\nCanada NewsWire\nTORONTO, Oct. 13, 2016\n\n\n\nTSX: JAG\n\n\n\nTORONTO, Oct. 13, 2016 /CNW/ - Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (TSX: JAG) is pleased to report that a majority of holders of senior secured Convertible Debentures (the \"Debentures\"), representing approximately 80% of the principal amount of total outstanding Debentures, have elected to convert their Debentures into common shares of the Company (\"Common Shares\"). The conversions of Debentures have resulted in an increase in the Company's outstanding Common Shares to 257,035,227, which will be reflected on the TSX in the coming days.  This will also result in an increase in the Company's market capitalization to approximately C$193 million (based on 257,035,227 shares valued at C$0.75 per share). With the conversion of the majority of the Debentures, the Company has significantly strengthened its balance sheet with the reduction of its senior secured debt and savings of US$645,000 per quarter (approximately US$2.6 million per year) in interest payments, reflecting an immediate savings in the Company's annual cash outflow. The Company is now in a zero \"net debt\" position, considering the balance sheet at June 30, 2016. Net debt is defined as total debt, less cash.\n\nOn October 28, 2015, the Company announced the closing of a US$21.5 million private placement of the Debentures with a maturity term of three years (refer to the news release dated October 28, 2015 for full details). The Debentures are convertible at the holder's option into Common Shares at a price of C$0.15 per Common Share, being a ratio of approximately 8,781 Common Shares per US$1,000 principal amount of Debentures, based on a fixed exchange rate of US$0.7592 per C$1.00.  \n\nRodney Lamond, Pre...