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Titan Logix Corp V.TLA

Alternate Symbol(s):  TPCFF

Titan Logix Corp. is a technology company. The Company specializes in mobile liquid measurement solutions. It has designed and manufactured mobile liquid measurement solutions to enable businesses to reduce risk and maximize efficiencies in bulk liquid transportation. The Company’s solutions are designed for hazardous and non-hazardous applications, and serve customers in a range of applications, including petroleum, environmental solutions, chemicals, and agriculture. It serves the petroleum, chemical, and water markets with the TD100 series products (transmitter, probe and display), offering fleet operators accurate level measurement, reliable overfill protection, and a variety of automation, integration, and control capabilities for their tanker truck operations. It delivers its mobile tanker solutions to the market through partnerships with original equipment manufacturers (OEMs), dealers, and private fleets across Canada, the United States, and Mexico.


TSXV:TLA - Post by User

Post by mrmoribundon Mar 02, 2022 4:17pm
220 Views
Post# 34476596

TLA owns 1,250,000 Bri-chem warrants ($0.10 exercise price)?

TLA owns 1,250,000 Bri-chem warrants ($0.10 exercise price)?Here is from a 2020-07-17 Bri-chem press release:

. . . the Company (Bri-chem) and Greypoint have agreed to certain amendments to the Sub Debt Loan, including but not limited to a 2.0% payment-in-kind (PIK) interest on the Sub Debt Loan until loan maturity, the amendment of certain financial covenants and the issuance of 2,500,000 Bri-Chem warrants (the "Warrants") to Greypoint. The Warrants are exercisable into common shares of Bri-Chem at a price of $0.10 per share for a period of 4 years from the date of issuance.  

Titan Logix was (and remains) a 50-50 co-lender with Greypoint. Each party put up $5 million at a time (2017-11-06) when Bri-chem's situation looked a lot shakier than it does today.

Everything I've read on this loan appears to indicate that Greypoint's situation and TLA's (re the loan) are essentially identical.

So TLA should own 1/2 of those 2,500,000 warrants (i.e., 1,250,000). Oddly, though, I can see no indication of this in any of TLA's filings.

(It's possible that when the loan was amended in 2020 Greypoint agreed to accept the warrants while TLA wanted (and got) something else. But, if that were the case, it's odd that this wouldn't have been mentioned in the Bri-chem 2020-07-17 press release.)

Until early 2021 it could easily have seemed like it didn't matter because Bri-chem was consistently trading below the $0.10 exercise price.

But how things have now changed. Bri-chem (BRY) shares closed today at $0.41. At 31 cents above the exercise price, those 1,250,000 warrants are in-the-money to the tune of:

1,250,000 x 0.31 = $387,500

Not astronomical but certainly material.

If this is correct then it should be mentioned in TLA's filings.

Note that the warrants expire in July 2024.
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