Mr. Simon Springett reports
GLG ANNOUNCES CHANGES TO CONVERTIBLE DEBT AGREEMENT
GLG Life Tech Corp. has finalized an agreement that is expected to result in conversion of a $4.3-million obligation into shares in the company. The obligation originated with GLG's disposition of its interest in the AN0C joint venture. Pursuant to that disposition, on Sept. 30, 2013, GLG issued a three-year convertible note to China Agricultural Healthy Foods Ltd. (CAHFC) with a principal amount of $4,295,532.65 due Sept. 30, 2016, or convertible into common shares of GLG at $1.80 per share.
The agreement recently signed by GLG and CAHFC will amend that note, such that the principal amount would be, upon final regulatory approval, immediately converted into common shares at $1 per share which would be at a premium to the Sept. 11 closing pricing of the company's stock of 435 per cent. Upon conversion, CAHFC would become an insider of GLG holding approximately 11.4 per cent of the issued and outstanding shares of the company. The Toronto Stock Exchange has granted conditional approval of the agreement and the amended exercise price, pending its final regulatory review and the clearance of the applicable personal information forms to be submitted by CAHFC. Once the TSX issues final approval, the signed agreement will thereupon become fully effective and the principal balance will be converted into shares at the new rate and the debt obligation will be eliminated.
With this accelerated conversion, GLG will remove from its books this substantial liability.
We seek Safe Harbor.
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