The TSX Venture Exchange has accepted for filing the company's documentation in connection with the issuance of 32 million non-transferable warrants to purchase 32 million common shares, exercisable at a price of 33 cents per share, expiring on March 31, 2026, pursuant to an amended 8 per cent credit facility totalling $24,892,949, with Mercury Financing Corp.
The company has undertaken to raise additional funds in the amount of $3-million within the first-year anniversary of the closing of the transaction and every anniversary thereafter for the three subsequent years, for total cumulative gross proceeds of $12-million. Should the company not raise additional funds on a yearly and cumulative basis, the company will issue the lender an additional five million non-transferable warrants per year, where a financing milestone has not been met (maximum of 20 million non-transferable warrants). Each warrant will be exercisable at a price per share equal to the market price, subject to a minimum exercise price of 33 cents, on the date such warrants must be issued by the company and will expire on the date the amended credit facility expires.
The company will increase the buyback purchase price of the existing production fee granted in favour of the lender to $11.25-million. Furthermore, for the first four years of the amended credit facility, in the event the company has not repaid the credit facility in full and the lender remains the creditor of the company in relation to such credit facility, the company will grant the lender an additional annual production fee of 25 cents per tonne, which may be bought back by the company for $2.25-million, for a maximum annual additional production fee of $1 per tonne (which may be bought back by the company for a total amount of $9-million).
Insider/pro group participation: nil
For further information, please refer to the company's news releases dated March 18, 2021, and April 1, 2021.
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