Hi-Alta raises $7 million with debenture sale

Broker consolidator Hi-Alta (TSE: HIA) made the maximum amount possible from its recent release of debentures, bringing in $7 million in new capital. The offering of 9% convertible unsecured subordinated debentures was expected to bring in between $4 million and $7 million. The debentures can be converted into Hi-Alta common shares at a conversion price of $2.50, at the discretion of the buyer. As of February 28, 2005, however, Hi-Alta can redeem the debentures by issuing tradable common stock, if the company’s shares are trading at or above 124% of the conversion price.”The net proceeds of this financing will be used by Hi-Alta to fund its ongoing acquisition program, for general working capital purposes and to replace certain existing indebtedness,” states a company press release. Hi-Alta president and CEO Scott Tannas has said the company hopes to increase its number of brokerages, which are spread throughout Western Canada, to 50 by the end of first quarter 2002. The company’s Western Insurance Network (WIN) currently serves 37 communities.The company is also expanding its product offerings. In a statement late last year, Tannas noted, “We are in the final planning stages for the introduction of a special life insurance program which we are developing in a joint venture with a major Canadian life insurer. We are also in the process of applying for a Canadian bank charter, which will allow us to expand upon our early success in agency banking.”