Edleun Group, Inc. (“Edleun” or the “Company“) (TSX-V: EDU), the leading provider of quality early childhood education and care in Canada, announced today the completion of a private placement offering of $5 million aggregate principal amount of 6.75% convertible unsecured subordinated debentures due May 15, 2017 (the “Debentures”).
The proceeds of this offering will be utilized to acquire and improve existing child care centres and to develop additional centres to meet unsatisfied demand in Alberta, Ontario, and British Columbia while providing Canadian parents and children with quality facilities and programs.
The Debentures are convertible at the option of the holders into common shares of Edleun at a conversion price of$1.10 per share (the “Conversion Price”) (being a conversion rate of approximately 909.091 shares per $1,000principal amount of Debentures) until May 15, 2017.
The Debentures are redeemable by the Company between May 15, 2015 and May 15, 2016 provided the market price of the common shares of the Company is greater than or equal to 125% of the Conversion Price and thereafter until maturity redeemable at their principal amount plus accrued interest. The Company may, at its option, pay interest on the Debentures by delivering shares to the trustee for sale.