Not good Trade creditors
The following terms have been presented to the company's trade creditors:
- Approximately $1.3-million of debt to trade creditors may be paid in shares at a price of five cents per share;
- The remaining $1.3-million of debt to trade creditors may be paid with new promissory convertible notes as outlined above.
TSX financial hardship exemption application and status of listing on TSX
Under TSX rules, the issuance of new promissory convertible notes and warrants to unsecured lenders and trade creditors noted above would ordinarily require approval of Victory Nickel's shareholders. As such, the company has applied to the TSX pursuant to the financial hardship provisions of Section 604(e) of the TSX Company Manual for an exemption from the requirement to obtain shareholder approval. Receipt of such exemption will permit the issuance of the shares, new promissory convertible notes and warrants, as noted above, so that the company will be able to quickly complete the restructuring.
Victory Nickel is seeking this exemption from the TSX on the basis that the company is in serious financial difficulty, and the immediacy of the need for the restructuring does not afford it sufficient time to seek shareholder approval.