Trenchant Capital Corp. closed the second tranche of its prospectus offering of 8% series B secured convertible debentures, raising additional gross proceeds of C$2.3 million through the issuance of 2,335 debentures at C$1,000 per debenture.
Net proceeds were used to fund a C$2.3 million loan to ABO Healthcare LP, which is related to Hillcore Group. The outstanding principal of the loan will bear interest at the rate of 10% per annum, payable quarterly in cash and payable on the maturity date of Jan. 27, 2023.
Together with C$5.7 million principal amount of debentures issued in the initial prospectus offering, the company now has raised about C$8.0 million in gross proceeds.
Both the first and second tranches of debentures will mature Jan. 31, 2023. The outstanding principal of the debentures will bear interest at the rate of 8.0% per annum, payable quarterly in cash. Beginning March 23, 2019, the outstanding principal amount of the debentures may be converted, at the option of the holder, into the company's common shares.
Trenchant intends to apply to list the debentures on the TSX Venture Exchange, if there is a sufficient number of holders to meet the TSXV's distribution requirements.
The syndicate for the offering was led by Canaccord Genuity Corp. and Industrial Alliance Securities Inc., who acted as co-lead agents, together with Raymond James Ltd., GMP Securities LP, PI Financial Corp., Echelon Wealth Partners Inc., Integral Wealth Securities Ltd., Hampton Securities Ltd. and Mackie Research Capital Corp. The agents received a cash commission of 6.5% of the gross proceeds.