Ecuador Gold investor Aura acquires debentures
Ecuador Gold investor Aura acquires debentures
2014-12-17 18:58 ET - News Release
Mr. Glenn Laing reports
EARLY WARNING REPORT ISSUED PURSUANT TO NATIONAL INSTRUMENT 62-103 FOR ACQUISITION OF SECURED CONVERTIBLE DEBENTURES OF ECUADOR GOLD AND COPPER CORP.
Aura International Services Ltd. is disseminating this press release as required by National Instrument 62-103 (the early warning system and related takeover bids and insider reporting issues) in connection with the filing of an early warning report regarding the acquisition of securities of Ecuador Gold and Copper Corp. by Aura of Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.
On Dec. 15, 2014, pursuant to a private placement by the company of secured convertible debentures due Nov. 28, 2015, of $840,000 (U.S.) total principal amount, Aura acquired $675,000 (U.S.) total principal amount of such debentures.
Each purchased debenture bears an interest of 12 per cent per year, and the principal amount and all accrued and unpaid interest are due and payable on Nov. 28, 2015, unless converted into units of the company at a price of five cents per unit on or before the maturity date. Each unit comprises one common share and one-half common share purchase warrant of the company. Each whole warrant entitles the holder to acquire one additional common share of the company at an exercise price of 10 cents per share for 24 months following the date of issuance.
In addition to the purchased debentures, Aura also owns 129,063,587 common shares of the company, representing approximately 51.5 per cent of the currently outstanding common shares of the company, not including the additional 15,841,255 common share purchase warrants of the company also held by Aura. Assuming that Aura were to fully convert its owned warrants and its purchased debentures (at a Canadian-U.S.-dollar exchange rate of $1.1482), but none of the interest thereon, and assuming the conversion of the warrants contained within the units acquired upon conversion of the purchased debentures, and assuming no other new issuances of common shares at or prior to such time, Aura would acquire 39,092,305 common shares, representing 13.5 per cent of the then outstanding common shares. Taking into account the common shares acquired upon such conversions, together with its owned shares, Aura would beneficially own a total of 168,155,892 common shares, representing approximately 58 per cent of the then outstanding common shares.
Aura acquired the purchased debentures for investment purposes and continues to monitor the business, prospects, financial condition and potential capital requirements of the company. Depending on its evaluation of these and other factors, Aura may from time to time in the future increase or decrease its ownership, control or direction over common shares or other securities of the company through market transactions, private agreements, subscriptions from treasury or otherwise.
A copy of the early warning report may be found on SEDAR.
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