Inca One Gold (IO.V) has increased the total size of its private placement to C$5.25M (from C$4M) due to a higher than expected demand for the placement. The company has already closed a first tranche, raising C$3.25M and we would expect a second tranche to close relatively soon. As a brief reminder, the private placement has been priced at C$0.25 per unit, which each unit consisting of one common share and one warrant, exercisable at C$0.40 for 36 months.
As the company has now raised the minimum amount which was necessary to trigger the recapitalization of the company, a substantial part of its debt has now been converted into equity. C$8M has been converted into 20.3 million shares and 9.2 million warrants (indicating a conversion price of C$0.394 per share) whilst another chunk of debt has been settled into a combination of contingent debt and warrant deposits. A final C$3.8M has been converted into new debentures and notes, so the company’s balance sheet will be completely overhauled once all the dust has been settled.
Inca One has now also appointed Bruce Bragagnolo, the previous CEO of Timmins Gold (TGD, TMM.TO) as its chairman, and this could be a good move as Bragagnolo has plenty of experience in executive roles and knows how to deal with South American operations.Go to Inca One’s website
The author has a long position in Inca One. Inca One Gold is a sponsor of the website. Please read the disclaimer