Debenture News
Erin receives shareholder, TSX-V OK to amend debentures
2018-05-29 19:11 ET - News Release
Mr. Blake Fallis reports
ERIN VENTURES ANNOUNCES AMENDMENT OF ALL OUTSTANDING CONVERTIBLE DEBENTURES
In connection with the previous announcement on May 8, 2018, Erin Ventures Inc. has received the approval from the TSX Venture Exchange and all of the outstanding holders of the 12-per-cent-interest-bearing unsecured convertible debentures, convertible into units of Erin, each unit composed of one common share and one common share purchase warrant, which were issued on April 10, 2015, July 14, 2015, Nov. 3, 2015, and Nov. 2, 2016, by way of private placements to amend the terms of the debentures.
The amendments to the Debentures are as follows:
- an extension of the maturity date of the Debentures, to be: (a) June 1, 2020, and (b) for the outstanding Debentures that were issued on April 10, 2015, the maximum allowable extension of such Debentures' terms was a maturity date of April 9, 2020 (together, the "Extended Exercise Term");
- to amend the conversion price of the Debentures by amending the minimum stipulated conversion price of $0.70 per Unit (as a result of the 7 to 1 consolidation completed by Erin effective on August 30, 2017 (the "Consolidation")) to be a conversion price of $0.15 per Unit during the first year of the Extended Exercise Term and a conversion price of $0.30 per Unit during the second year of the Extended Exercise Term;
- to amend the exercise period for the underlying warrants that form part of each Unit issuable upon conversion of a Debenture to be the lesser of (a) a one (1) year exercise period (as currently provided in the Debentures) and (b) such period of time less than one (1) year being the maximum period of time allowable to extend the exercise period of the warrants pursuant to the policies and rules of the TSXV;
- to amend the price applicable to the payment of accrued interest that is satisfied by the issuance of common shares from the minimum stipulated price of $0.42 (as a result of the Consolidation) to be the greater of (a) $0.10, and (b) the volume weighted average trading price of the common shares of Erin for the ten (10) trading days preceding each interest payment (such payments are made on June 1, and December 1).
The aggregate amount of principal of the outstanding Debentures is $597,000. All of such principal will continue to remain outstanding under the terms of the amended Debentures. Holders' June 1, 2018 interest payment will be paid in the ordinary course on June 1st pursuant to the terms of the current Debentures. Subsequent interest payments commencing December 1, 2018, paid semi-annually, will be satisfied pursuant to the terms of the amended Debentures.
About Erin Ventures
Erin Ventures Inc. is an international mineral exploration and development company with boron assets in Serbia and gold assets in North America. Headquartered in Victoria, B.C., Canada, Erin's shares are traded on the TSX Venture Exchange under the symbol "EV". For detailed information please see Erin's website at www.erinventures.com or the Company's filed documents at www.sedar.com.
Erin's 100% owned Piskanja project is a high-grade boron deposit with a NI 43-101 compliant mineral resource of 5.6 million indicated tonnes (30.8% B2O3), in addition to 6.2 million inferred tonnes (28.8% B2O3).
We seek Safe Harbor.