News Release....Insult to injury !!!I can't believe this is allowed to happen !!!
WTF.....so much for "Shareholder protection"..... The previous RS action combined with this News Release only validates what a farce this system is.
Hope your sitting down when u read this...... F*&K Me!!!!
Four Nines Gold arranges debenture, unit financings
2018-11-08 19:49 PT - News Release
Mr. Jim Mustard reports
FOUR NINES GOLD INC. ANNOUNCES CONVERTIBLE DEBENTURE OFFERING AND UNIT OFFERING
Four Nines Gold Inc. intends to complete a non-brokered private placement financing of secured convertible debentures for gross proceeds of up to $375,000 and a further non-brokered private placement offering of up to five million units at a price per unit of 7.5 cents for additional gross proceeds of up to $375,000. The debenture financing and the unit offering are subject to the approval of the Canadian Securities Exchange.
The terms of the Debentures include:
- -- a maturity date of one year from the date of issuance (the "Maturity Date") and the principal amount of the Debenture, together with any accrued and unpaid interest, will be payable on the Maturity Date, unless earlier converted in accordance with its terms;
- -- the Debentures bear interest (the "Interest") at the rate of 10% per annum, which Interest will be payable on maturity, unless earlier converted; and
- -- the principal amount of the Debenture, together with all accrued and unpaid interest thereon, is convertible into units of the Company at the option of the holder (each, a "Debenture Unit") at a conversion price of $0.10 per Debenture Unit, with each Debenture Unit comprised of one Class A common share of the Company (each, a "Debenture Share") and one transferable share purchase warrant (each, a "Debenture Warrant"), with each Debenture Warrant exercisable into one additional Debenture Share (each, a "Debenture Warrant Share") at an exercise price of $0.10 per Debenture Warrant Share for a period of five (5) years from the date of conversion.
Repayment by the Company of amounts owing under the Debentures will be secured by a charge over all of the assets of the Company. All subscribers to the Debenture Financing will enter into an agency and interlender agreement with the Company and a designated subscriber to the Debenture Financing (the "Agent"), pursuant to which the subscribers will appoint the Agent to act on their behalf as to certain matters relating to the Debentures, including with respect to enforcement of the security interest.
The terms of the Units include:
- -- each Unit is comprised of one Class A common share in the capital of the Company (each, a "Unit Share") and one transferable common share purchase warrant (each, a "Unit Warrant"); and
- -- each Unit Warrant being exercisable into one Unit Share at a price of $0.10 per Share for a period of five (5) years from the closing of the Unit Offering.
The proceeds of the Debenture Financing and the Unit Offering are expected to be used for debt repayment, accounts payable and general working capital purposes.
All of the securities to be issued in connection with the Unit Offering are subject to a statutory hold period of four months and one day.
We seek Safe Harbor.