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- Mariner Corporation has raised $2.4 million by placing 20 million shares to Panshan Capital
- Mariner shares last traded at 2 cents each, while Panshan is offering a 600 per cent premium price of 12 cents per share under the placement
- Panshan will also gain all of Mariner’s outstanding convertible notes, giving it a 71 per cent interest in the company
- The funds raised will be used to pay loans owed by Mariner to Global Clean Energy and Northquest SPV 10
Investment company Mariner Corporation has raised $2.4 million to fully pay back its outstanding loans.
The money will be raised through a share placement to sophisticated investor Panshan Capital. Panshan will buy 20 million Mariner shares at 12 cents each. This purchase price is a massive 600 per cent premium to Mariner’s current share price of 2 cents a piece.
Congruent to the share placement, Mariner will also restructure its existing convertible notes, which will result in the notes being fully discharged. The conversion price for the notes is currently 3 cents each, but in line with the share placement price, the conversion price will be increased to 12 cents per share.
According to Mariner, current note holders have agreed to sell their amended convertible notes to Panshan, which will then convert the notes to shares. This means all debt relating to Mariner’s notes will be fully discharged.
As a result of the placement and note conversion, Panshan will hold 71 per cent of Mariner. The capital raising and subsequent majority holding by Panshan, however, is still subject to shareholder approval.
The funds raised will be used to pay loans owed by Mariner to Global Clean Energy and Northquest SPV 10.
Mariner shares have been in a trading halt since Tuesday, July 2, but lasted trades for 2 cents each.
