Mitec Technologies Inc. makes follow-on investment
TORONTO, Sept. 5, 2013 /CNW Telbec/ - Mitec Technologies Inc. ("Mitec") has participated in a non-brokered private placement in Covalon Technologies Inc. ("Covalon", TSX-V: COV).
Mitec purchased 150 units at $1,000 per unit for an aggregate investment of $150,000. Each unit consisted of $1,000 principal amount of 12 per cent senior secured convertible debenture and 6,451 warrants. Each debenture is convertible into 6,451 common shares of Covalon at a conversion price of 15.5 cents at any time on or prior to the maturity date, which will be three years from August 30, 2013. Each warrant will entitle Mitec to acquire one common share of Covalon at an exercise price of 15.5 cents at any time for a period of three years from August 30, 2013.
Should Mitec convert the full amount of the debentures and exercise each warrant, it would result in ownership of 1,935,484 issued and outstanding shares of Covalon. The issuance of these additional shares to Mitec, combined with the shares Mitec currently holds in Covalon, would result in Mitec holding 2,747,484 of Covalon's common shares on a partially diluted basis representing approximately 14.6 percent of Covalon's issued and outstanding shares.
Mitec acquired these units for investment purposes.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mitec Technologies Inc.