News about a fresh infusion of capital into a company is almost always seen in a positive light by investors, and Vortex Energy Corp. (OTC:VTECF) made an announcement of that nature yesterday. Prior to the beginning of trading this morning, it could be a good time for investors to consider taking a closer look into the announcement.
Private Placement Complete
On January 28, Vortex Energy Corp announced that it had been successful in closing a non-brokered private placement. In the private placement, the company had offered unsecured convertible debentures and managed to raise total gross proceeds to the tune of C$400,000. It was also noted in the news release that the convertible debentures in question had been denominated in principal amounts of C$1000 each and would all mature on January 24, 2026.
Prepayment Option
The debentures would carry interest of 10% a year from the date of issue, and that would be calculated on a quarterly basis. The payment for the interest would need to be paid off on the date of maturity. However, Vortex Energy Corp could also choose to pay it off prior to the maturity date. However, in order to do so, the company would also have to issue 30 days’ notice to the holders.
