TORONTO, Dec. 16, 2020 /CNW/ -- Engine Media Holdings, Inc. ("Engine" or the "Company"; TSX-V: GAME; OTCQB: MLLLF), announces that it has reached agreement with holders of US$8 million of its convertible debentures to retire their debentures in exchange for the Company's issuance of common shares and warrants. The convertible debentures being settled are convertible into units at a conversion price ranging from US$7.50 to US$11.25 per unit, with each such unit consisting of a common share and one-half of a warrant, with each whole warrant exercisable into a common share at an exercise price of US$15 per share for a period of three years from the issuance of the debentures. The debentures have a base interest rate of 5% that increases to 10% under certain conditions.
In exchange for settlement of the debentures, the holders will receive units of the Company equivalent to the principal amount of the debentures based on a price of US$7.50 per unit. Each unit shall be comprised of one common share and three-quarter (3/4) of a warrant, with each full warrant exercisable into a common share at an exercise price of US$15 per share for a period of three years.
The Company will be extending this offer to retire its convertible debentures on the same terms to other similarly situated holders of an additional $3.65 million of its convertible debentures.
The issuance of common shares and warrants in connection with the settlement of these debentures is subject to the approval of the TSX Venture Exchange.