Spartan Delta Corp T.SDE

Inception Exploration and conversion at C$8.50 !!!

[stockfy]

Great news today. The total debt goes down and the holders of this convertible debt are in at C$8.50!

CALGARY, AB, Sept. 29, 2021 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) announces that the $50.0 million unsecured non-interest-bearing convertible promissory note of the Company (the "Spartan Note") issued on March 18, 2021 in connection with the acquisition of Inception Exploration Ltd. was converted today into 5,882,353 common shares in the capital of the Company (the "Common Shares") at a conversion price of $8.50 per Common Share and the Spartan Note was cancelled.

Pursuant to an amending agreement entered into between Spartan and the holder of the Spartan Note, the parties agreed to the early conversion of the Spartan Note at a conversion price of $8.50 per Common Share.

Prior to the amendment, the Spartan Note was convertible on or after March 18, 2023 for such number of Common Shares calculated based on the greater of: (i) the volume weighted average trading price of the Common Shares for the 10 trading days immediately preceding the delivery by Spartan of a notice of conversion to the holder of the Spartan Note; and (ii) $7.67 per Common Share.

[Seppelt]

So the net debt is down and share count slightly up. The presentation hasn't been updated, probably after Q3 report.

[TouchDown12]

Regardless of the presentation update - we are strating to move this AM! It is a very significant move to have that 50M converttide at 8.50. Not sure why as they could have bought shares on the open market for likley 5.25-5.50; but it sure looks good as debt reduction is a HUGE optic for many investors in the E&P space. GLTA TD12

[Seppelt]

The presentation has been updated but I don't see any debt reduction and don't remember the exact number of shares outstanding in the old presentation to see the difference. As for the holder, whoever he is, they can always buy on the open market but the 50M is not earning any interest. Their option was to wait for a few years and convert at about $7.60 or convert now at a slightly higher

[baranja]

It is bulish. debt holders are most likely hoping for price to go over 8.5 sooner than later instead of wating two years but this move definately benefits SDE, big time. Or they just couldn't sell those notes as they are non-interest and they realy had no choice.

[Fyordian]

Makarov has 19.9% ownership interest now, it was premeditated when he purchased a portion of the share offering. Only reason he's converting today and not in 1.5 years is because he has something planned in the next year.

[baranja]

That was him?

[Fyordian]

Source: ARETI Early Warning Report September 29 2021 By consolidating a position as close as possible to 20%, but not in excess, he is right under the takeover bid rules. The takeover bid rules state that formal takeover bid circulars must be filed for any additional purchases in excess of the 20% threshold. On a side-note: there has been large block consolidations over the past month and I have

[baranja]

Makes sense...

[Seppelt]

Yes, it is Igor. As per Canadian Insider, Areti purchased 5.88 million shares on October 29. Value: $50 million. He now holds about 15%, less than that on fully diluted basis.

[stockfy]

Obviously, they were not idiots to accept the conversion at C$8.50....they do know something....