Mirach Energy

Mirach Energy: Group proposed a private placement of 152m new shares at an issue price of $0.1242 per share to 6 individuals. The issue price of $0.1242 is at a 11.3% discount to its last traded price of $0.14. Net proceeds of $18.1m will be used to redeem the 3% senior convertibles bonds (CBs) due 2014. Separately, the group entered into a term sheet for a proposed 2-year convertible loan with the 10 individuals of an aggregate $36m, with a conversion price of $0.1242 per share. The interest of 7% will be calculated and payable in the form of shares at the conversion price from each drawdown on the loan. The maximum issuance from the convertible loan of 310m new shares makes up 34% of the enlarged share capital after the placement shares. The group currently has a net gearing of 47%, mainly made up of its CB of $16m.