Bri Chem Corp a leading North American wholesale distributor and manufacturer of oil and gas drilling fluids and steel pipe is pleased to announce that Bri-Chem has closed a ten million dollar subordinated debt facility with Fulcrum Capital Partners Inc.
The financing consists of a USD 10 million five year subordinate debenture and the issuance of 300,000 common share purchase warrants. Each Warrant entitles Fulcrum to acquire one (1) Bri-Chem share at an exercise price of USD 1.77 for a period of 48 months from the date of issuance.
Bri-Chem has the option to call the Warrants at a 30% premium to the exercise price at any time during the first eighteen months from the date of closing of the Credit Facility. The Credit Facility is interest only for the first fifteen months with an annual interest of 11.5%. Bri-Chem intends to use the net proceeds from the Credit Facility for future potential acquisitions, working capital and general corporate purposes, which may include capital expenditures.
Mr Don Caron CEO of Bri-Chem commented that "We are extremely pleased with the confidence that Fulcrum has shown in our Company, its operational strategies and management team. This Credit Facility will allow us to further strengthen and increase our presence in the North America drilling fluids marketplace and seek out new opportunities for additional steel pipe manufacturing micro-mills."
