Foreign exchange payments specialist Midpoint Holdings Ltd (CVE:MPT) has arranged a non-brokered private placement for up to an aggregate of C$500,000, issuing up to an aggregate of 10mln units the company said on Thursday.
The proposed subscription price will be five cents per unit, with each unit comprising one common share and one-half of one common share purchase warrant in the capital of the company.
Each whole warrant will entitle the holder thereof to purchase one additional common share of the company for a period of 24 months from the closing of the private placement at an exercise price of 20 cents per warrant common share.
However, if at any time after the date that is more than four months and one day following the closing of the private placement, the common shares trade on a stock exchange at a volume-weighted average trading price of 50 cents or greater per common share for a period of 20 consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof and in such case the warrants will expire on the 30th day after the date on which such notice is given by the company.
The proceeds of the proposed private placement will be used for the company's general corporate and working capital purposes.
Shares for debt
The company is also pleased to announce that, in conjunction with its proposed private placement, it proposes to settle with a certain creditor certain indebtedness currently due and owing by the company to the creditor in the aggregate amount of C$80,000 by way of the issuance by the company to the creditor of an aggregate of 1.6 million common shares of the company at a deemed settlement and issuance of price of five cents per debt common share.
The common shares and the warrants comprising the units to be issued in connection with the completion of the private placement, and the debt common shares to be issued in connection with the completion of the shares for debt, will be subject to a hold period of four months and a day from the date of issuance in each instance.