Business
Orbite Announces Bought Deal Financing
Orbite Announces Bought Deal Financing.
About this update from Orbite Technologies Inc
[{"type":"text","content":"\n\n\n\n\nMarketwire\n\n\n\n\nOrbite Announces Bought Deal Financing\n\n\n\n\n\n\n\n\n\n MONTREAL, QUÉBEC--(Marketwired - Jan. 28, 2016) - \n NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.\n Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) (\"Orbite\" or the \"Company\") is pleased to announce that it has entered into an underwriting agreement with Euro Pacific Canada Inc. (the \"Underwriter\") under which the Underwriter has agreed to buy on a bought deal basis 4,000 units of the Company (each, a \"Unit\") at a price of $1,000 per Unit for gross proceeds of $4,000,000 (the \"Bought Offering\"). In addition to the Units distributed pursuant to the Bought Offering, the Company has entered into agreements with several of its key suppliers who have agreed to receive an aggregate of 2,938 Units as consideration for outstanding invoices in the aggregate amount of $2,938,000 (the \"Units-for-Debt Offering\").\n The Company also granted the Underwriter an option (the \"Underwriter's Option\"), exercisable in whole or in part, at one or more additional closings, at any time within 30 days of the closing of the Bought Offering, to purchase up to an additional 6,000 Units for additional gross proceeds of up to $6,000,000, resulting in aggregate gross proceeds of up to $12,938,000 (inclusive of the Units-for-Debt Offering). \n \"Entering into a second underwriting agreement for a bought deal financing is a strong signal of the market's confidence in Orbite's financial outlook as we approach full commissioning, start-up and commercial production at our high purity alumina production facility,\" stated Glenn Kelly, CEO of Orbite. \"It is also very pleasing to see our key partners taking a long term view of the Company beyond their role in the construction of our facility.\" \n Each Unit consists of $1,000 principal amount of 5% convertible unsecured unsubordinated debentures (the \"Debentures\") and 2,500 share purchase warrants (each single share purchase warrant, a \"Warrant\") of the Company (which is equivalent to 100% of the number of class A Shares (the \"Common Shares\") into which the Debentures are convertible). The Debentures will mature five years from closing date of the Bought Offering (the \"Maturity Date\") and will bear interest at a rate of 5% per annum payable semi-annually i...