“We are pleased with the continued support from our existing capital partners as we continue our recent track record of execution,” said
Unsecured Convertible Facility:
The Company entered into a
Subject to certain conditions, the Company has the right to call additional tranches, totaling
At the closing of each additional tranche, the Company shall issue share purchase warrants equal to 55% of the number of Shares a debenture is convertible into for a particular tranche. Each warrant will be exercisable to purchase one Share for a period of 24 months from the date of issuance at an exercise price equal to 120% of the volume weighted average price of the Shares on the Canadian Securities Exchange (“CSE”) for ending on the trading day immediately prior to the applicable closing of each tranche. As part of the Initial Tranche, the Company issued to the Investors a total of 3,293,413 warrants, each exercisable at
The Debentures shall provide for the automatic conversion into Shares in the event that the Shares trade at a volume weighted average trading price that is 50% above the Conversion Price on the CSE for forty-five (45) consecutive trading days.
Senior Secured Term Loan:
The Company has also entered into a further amendment to the commercial loan agreement that governs its senior secured term loan (the “October 2018 Loan”) with funds managed by
The principal amount of the Incremental Notes will carry an interest rate of 18.0% per annum, to be paid as follows: (a) 12.0% shall be paid in cash monthly in arrears; and (b) 6.0% shall accrue monthly to the outstanding principal as payment-in-kind.
As consideration for the increase in the size of the facility under the
Senior Secured Convertible Facility:
Pursuant to the terms of the Facility, the conversion price for 5.0% of the existing Notes outstanding prior to Tranche 4 and Incremental Advance (including paid-in-kind interest accrued on such Notes), being 5.0% of an aggregate principal amount of
The Facility was amended to include, among other things, a modification to the minimum liquidity covenant, which extends the period during which it is waived from
Further details on the Facility are available can be found on the Company’s press release dated
The securities issued in the financing commitments have not been registered under the Securities Act of 1933, as amended, or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Senior Vice President,
INVESTOR RELATIONS CONTACT:
Chief Financial Officer