RE:Resignations? Liquidity
Pala Investments Ltd., the company's largest shareholder, has agreed to provide additional financing of up to $20-million (U.S.) pursuant to a promissory note. Draws by the company are subject to agreed use of proceeds and the company reaching satisfactory arrangements with certain creditors and vendors. The promissory note has a maturity date of Dec. 31, 2023, and bears interest at 8 per cent per annum on amounts drawn. The promissory note is subject to approval by the Toronto Stock Exchange, and was reviewed and approved by a committee of independent directors of the company.
The company is in discussions with Pala and other third parties to obtain additional required financing. Pala has fully disbursed the $15-million (U.S.) accordion to the company under its existing credit facility with the company.
There can be no assurance that the full amount of the financing contemplated by the promissory note will be made available, or that an agreement will be reached on additional financing or on the amount, terms and sufficiency of any such additional financing. Consistent with the company's previous disclosure, in the absence of sufficient financing being received and/or arranged on a timely basis from Pala or other third parties, the company may not be able to continue to carry on business in the ordinary course.