Orbite Aluminae Closes $5 Million Public Financing

Orbite Aluminae (TSX:ORT,OTCQX:EORBF) has closed an additional offering for gross proceeds of $5 million as a result of the exercise of a financing option by Euro Pacific Canada. Proceeds from the additional funds will be used towards Orbite’s high purity alumina production facility in Quebec.

As quoted in the press release:

The additional units will have the same terms and conditions as those issued in the first portion of the public offering, as each additional unit consists of $1,000 principal amount of 5% convertible unsecured unsubordinated debentures (the “Debentures”) and 1,077 share purchase warrants (each a “Warrant”) of the Company, issued under the short form base shelf prospectus and prospectus supplement dated March 18 and March 30, 2015 respectively. The Debentures will mature on April 6, 2020 (the “Maturity Date”) and will bear interest at a rate of 5% per annum payable semi-annually.

Each Debenture will be convertible, at the option of the holder at any time prior to the Maturity Date, into the number of shares computed on the basis of (i) the principal amount of the Debentures divided by the conversion price of $0.325 per share (the “Conversion Price”), and (ii) an amount equal to the additional interest amount that such holder would have received if it had held the Debenture until the Maturity Date (the “Make-Whole Amount”) divided by the then 5 day volume weighted average trading price of the shares on the TSX (the “Current Market Price”). The Make-Whole Amount shall be reduced by 1% for each 1% that the Current Market Price at time of conversion exceeds the Conversion Price. Each Warrant will be exercisable into one share for a period of 36 months from their issue date at a price of $0.39 per share.

The aggregate number of shares to be issued upon conversion of the Debentures, including the Debentures issued on April 6, 2015, and for any payment of the Make-Whole Amount shall not exceed the number of shares equal to the principal amount of the Debentures divided by $0.325 less the 25% maximum discount allowable by the Toronto Stock Exchange.

Click here to read the Orbite Aluminae (TSX:ORT,OTCQX:EORBF) press release