The final terms of the secured convertible bond, announced last month, is for NOK 60 million (around C$ 10.4 million) with an annual interest rate at 12 per cent and a conversion price at NOK0.85 (around C$0.146), it said today.
The company also said it was finalising a further facility with a US-based alternative investment manager, including a loan agreement for up to C$5million and a share purchase agreement for up to NOK100million (around C$17.2 million).
Under the proposed loan, Transeuro will receive up to C$5 million over two years, advanced in tranches. The loan will be unsecured and pay annual interest at 10 per cent.
Transeuro will also issue 1 million share purchase warrants with each $1million drawn from the loan agreement. The exercise price will be the greater of either C$0.146 or a 50 per cent premium to the closing price on the date the loan is executed.
The firm can then withdraw funds of up to NOK 100 million over a three year period, and the investment manager will purchase shares at a discount of 5 per cent to the forward volume weighted average share price during a 40 day forward pricing period.
Transeuro Energy chairman Aage Thoen said the three financing agreements provided a combination of debt at very competitive rates and equity through progressive share issuances.
This would provide the capital required to develop the firm's existing wells and possible new wells through to production and revenue, he said.
"The funding structure covers our short and long term needs and widens our strategic options," he added.