Trans Hex International (THI-V) has negotiated a non-brokered private placement of up to 1 million units at 15U apiece for proceeds of up to $150,000.
Each unit comprises one share plus half a warrant, with a full warrant entitling the holder to buy an additional share within two years of the deal’s closing, at 40.
Proceeds will go toward working capital.
James Bruchs, who will be named CEO and director of the company once the previously announced restructuring is completed, is the proposed purchaser of about 40% of the units. The other incoming directors and their associates will purchase the remaining units.
The deal is subject to regulatory approval.
In April, shareholders approved THI’s plan to settle the company’s debt (about $952,000) with African parent Trans Hex Group (THG). Under the deal, THI will transfer to THG all of its assets, save for a 75% stake in the Ngami property, which has an estimated fair market value in the range of $477,000-574,000.
THG will also assume $5.1 million in project finance loans made to some THI subsidiaries. Also included are $7.3 million in loans owing to Trans Hex Bermuda.
Shareholders also voted in favour of changing the company name to Tsodilo Resources.
THI expects the restructuring to wrap up about a week after the end of the Ontario Public Servants Union strike.
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