Aterra Investments Acquires Secured Convertible Debentures of Plains Creek

Aterra Investments Acquires Secured Convertible Debentures of Plains Creek

Canada NewsWire

TORONTO, Jan. 16, 2013 /CNW/ – Aterra Investments Limited (“Aterra”)
announces it acquired on January 15, 2013, in a private placement,
$1,000,000 aggregate principal amount of secured convertible debentures
(“Debentures”) of Plains Creek Phosphate Corporation (“Plains Creek”)
due March 31, 2014. The Debentures bear interest at 10% per annum.
Every $1,000 principal amount of Debentures is convertible at any time,
at Aterra’s option: (a) initially, into 10,000 common shares of Plains
Creek (“Common Shares”) at a price of $0.10 per share; and (b) in the
event of a share consolidation by Plains Creek, at a conversion price
per share equal to the greater of (i) $0.01 per share times the
consolidation ratio, and (ii) the minimum allowable conversion price of
$0.10 per share under the policies of the TSX Venture Exchange. In
connection with the issuance of the Debentures, Plains Creek agreed to
use its best efforts to cause a Common Share consolidation to become
effective on a 20-to-1 basis on or prior to March 15, 2013 (the
“Proposed Consolidation”). At the time of Debenture conversion, any
and all accrued interest is also convertible at Aterra’s option into
Common Shares at the applicable conversion price.

Aterra also owns 28,125,000 Common Shares (the “Owned Shares”) and
warrants to purchase an additional 14,062,500 Common Shares (the
“Warrant Shares”). Assuming Aterra were to fully convert its
$1,000,000 aggregate principal amount of Debentures (but none of the
interest) and exercise all its warrants, then (a) if such conversion
and exercise were to occur before the Proposed Consolidation became
effective, Aterra would acquire 10,000,000 Common Shares upon
conversion of the Debentures, representing approximately 2.4% of the
then outstanding Common Shares, and the Common Shares acquired upon
such conversion, together with the Owned Shares and the Warrant Shares,
would represent approximately 12.7% of the then outstanding Common
Shares, and (b) if such conversion and exercise were to occur after the
Proposed Consolidation became effective, Aterra would acquire 5,000,000
post-consolidation Common Shares upon conversion of the Debentures,
representing approximately 19.9% of the then outstanding
post-consolidation Common Shares, and the post-consolidation Common
Shares acquired upon such conversion, together with the Owned Shares
and the Warrant Shares, would represent approximately 28.3% of the then
outstanding post-consolidation Common Shares.

Aterra acquired the Debentures for investment purposes and continues to
monitor the business, prospects, financial condition and potential
capital requirements of Plains Creek. Depending on its evaluation of
these and other factors, Aterra may from time to time in the future
increase or decrease its ownership, control or direction over the
Common Shares or other securities of Plains Creek through market
transactions, private agreements, subscriptions from treasury or
otherwise.

SOURCE Aterra Investments Limited

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