BlueScout Technologies raises USD 4.3m in equity, debenture sale
(SeeNews) – Aug 28, 2012 - US-based laser wind sensor developer BlueScout Technologies (CVE:SCT), former Catch the Wind, said it had raised CAD 4.3 million (USD 4.3m/EUR 3.5m) in an equity and convertible debt offering.
Proceeds will be used to boost data generation and turbine integration necessary to capture the company's first volume of orders and to support its cost cutting efforts required to achieve profitability, chief executive officer Jo Major said.
As part of the financing, the company issued CAD 3.1 million in special warrants and CAD 1.2 million worth of convertible debt. The company issued over 51.1 million special warrants at a price of CAD 0.06 each and 1,200 debenture units at a price of CAD 1,000 each.
The special warrants can be converted into common shares and warrants, which entitle the holder to buy one more common share at a price of CAD 0.10 for a three-year period, at any time following the offering.
The convertible debenture units consist of one 10% unsecured convertible subordinated debenture and a warrant to purchase 2,500 common shares. The maturity of the debentures will be on August 24, 2015. They can be converted into common shares at any time prior to the maturity date at a price of CAD 0.10 per share.
BlueScout's management team also participated in the offering, buying some 7.7 million or around 15% of the entire issue of special warrants.