no money left to pay the debt - no sales - only saving grace is the share structure and all the retail investors who dont know any better - no one will finance this at this price so its equity and if im a debenture holder not at this price - at least a 20% discount -
KONTROL ENERGY ANNOUNCES EXTENSION OF MATURITY DATE FOR 8% UNSECURED DEBENTURE TO DECEMBER 15, 2020
Kontrol Energy Corp. has received approval from debentureholders representing 67.06 per cent of the outstanding principal amount of the company's 8 per cent unsecured redeemable debentures due Oct. 31, 2020, to extend the maturity date of the 2020 debentures to Dec. 15, 2020.
The terms of the 2020 debentures are governed by a debenture indenture entered into between the company and Computershare Trust Company dated Aug. 23, 2016, as amended, which provides that holders of the 2020 debentures may extend the maturity date for paying the principal amount by an instrument in writing signed by holders of 66-2/3 per cent of the principal amount of all the outstanding 2020 debentures.
This extension was completed in connection with the company's previously announced non-brokered private placement of units for gross proceeds of $5.8-million, allowing existing holders of 2020 debentures to exchange their 2020 debentures for units in the offering. Each unit will comprise one $1,000 8 per cent unsecured debenture of the company maturing on Oct. 31, 2022, and 10 common shares of the company.
The 2020 debentures shall continue to bear interest at the rate of 8 per cent per annum, calculated monthly on the basis of a 365-day year or 366-day year, for the extension period. The final interest payment will fall due Dec. 15, 2020.