Loyalist to make $1.25 million placement

Ontario-based Loyalist Insurance Group Ltd. (TSX Venture: LOY) says it has accepted a private placement of $1.25 million debenture.The 10.5% senior secured subordinated convertible debenture is due five years from date of closing (slated for April 23), and is convertible to five million common shares at $0.25 per.”The proceeds will be used to provide additional capital and surplus for The Loyalist Insurance Co. (of which Loyalist owns 44% enabling it to expand its specialized niche warranty and surety underwriting business,” a company release states. “The corporation will also use part of the proceeds to expand its mutual fund business and to increase its working capital.”