VOYA FinancingConsidering the fact that Captiva Verde stopped financing the Sage Ranch project in October of 2022 and obviously the bridge financing of the $4M debenture was issued to pay for some of those outstanding construction fees. If we review the VOYA mandate document it appears to me that "Breakup Compensation" may apply under the circumstances.
"In case the Company a) the closes the Proposed Financing from a source other than Voya, b) starts construction of the Sage Ranch project without using Voya financing, or c) raises equity to be used for Sage Ranch construction, and Voya has not notified the Company in writing that it declines to provide any of the Proposed Financing, or that its investment committee has disapproved the Proposed Transaction, then the Company will pay Voya a fee of $1,000,000 and issue Voya 2,000,000 warrants for the purchase of Company shares at a strike price of CAD 1.25 (“Breakup Compensation”), payable the earliest of a) the closing of Sage Ranch project financing from a source other than Voya, b) the start of construction of the Sage Ranch project, and c) the date of any equity issuance by the Company for Sage Ranch construction costs."
Financials and MD&A is due tomorrow.
We'll see what they say.