Encanto receives TSX-V OK for $7.7M debenture issuance 2016-04-07 00:29 ET - News Release
Mr. James Walchuck reports
ENCANTO POTASH CORP. ANNOUNCES REPLACEMENT OF EXPIRED CONVERTIBLE DEBENTURES
Further to the news release of March 14, 2016, Encanto Potash Corp. has received approval of the TSX Venture Exchange for the issuance of its March 1, 2016, convertible debentures in the aggregate principal amount of $7.7-million. The March 1, 2016, convertible debentures are being issued in replacement of previously outstanding convertible debentures in the aggregate principal amount of $7-million plus accrued interest of $700,000, which matured on Jan. 14, 2016.
The March 1, 2016, convertible debentures are secured by all of the assets of the company, bear interest at the rate of 7.5 per cent per annum, will mature on Sept. 1, 2017, and are convertible in whole or in part at the option of the holders into common shares of the company at a price of 10 cents per common share on or before Sept. 1, 2017.
Early warning requirements
In replacement for Hamad M. Al-Wazzan's convertible debenture, which matured on Jan. 14, 2016, Mr. Al-Wazzan acquired a March 1, 2016, debenture in the principal amount of $5,437,808.22, which is convertible into 54,328,082 common shares, which would represent 12.8 per cent of the issued and outstanding common shares of Encanto on a partially diluted basis. Mr. Al-Wazzan now beneficially owns and controls 31,574,509 common shares of Encanto, representing 8.5 per cent of the issued and outstanding common shares of Encanto. Mr. Al-Wazzan also beneficially owns and controls options to purchase 1,575,000 common shares of Encanto and the debenture convertible into 54,328,082 common shares of Encanto. Assuming full exercise of the options and conversion of the debenture in full, Mr. Al-Wazzan would beneficially own and control 87,477,591 common shares of Encanto, representing 20.6 per cent of the issued and outstanding common shares of Encanto on a partially diluted basis. Mr. Al-Wazzan acquired the securities for investment purposes and may acquire further securities of Encanto in the future.
We seek Safe Harbor.
© 2016 Canjex Publishing Ltd. All rights reserved.