OneRoof Energy Group, Inc. (TSXV:ON) today announced the status of its agreement with certain investors for the private placement financing of convertible notes totaling $15.0 million. As previously announced on November 24, 2014, OneRoof Energy and Black Coral Capital LLC entered into a non-binding term sheet designed to provide the Company with$15.0 million in capital in the form of secured convertible promissory notes.
Specifically, the investors in the convertible notes financing will include Black Coral Capital LLC and Spindrift Equities, LLC, existing investors in the Company, as well as certain other unaffiliated investors. The convertible notes will have a conversion price equal to$0.71 per common share, the closing price of the Company’s common shares on the TSX Venture Exchange on January 15, 2015, and will not reflect a discount to market, as previously announced. The convertible notes mature 15 months from issuance and are secured by the Company’s assets on a pari passu basis with the Company’s existing secured promissory notes.
The proceeds of the convertible notes financing is anticipated to be used for repayment of existing debt and related interest of approximately $7.5 million, as well as general working capital purposes, including general and administrative, IT development and investment in solar projects. The closing of the convertible notes financing is subject to approval by the TSX Venture Exchange and the execution of final documentation.
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.