Redhill converts High North debenture into 15MM shares 2015-06-11 16:08 ET - News Release
Mr. Graham Harris reports
REDHILL PROVIDES HIGH NORTH DEBENTURE AND CORPORATE UPDATE
Redhill Resources Corp. has provided an update on the High North Resources Ltd. debenture and corporate developments.
High North debentures
As part of its investments in High North, Redhill subscribed for $850,000 of High North debentures in April, 2014. These debentures were set to mature in April, 2015, and were paying 12-per-cent interest. In early 2015, the company was informed by High North that it would not be able to repay the principal, and accrued and unpaid interest portion of the debenture at maturity. In March, 2015, the company and the majority of other debentureholders elected to waive the event of default by High North, and agreed to participate in a plan of arrangement to modify or convert the debentures in early June, 2015. Under the plan, debentureholders were given the option to a) convert their principal and interest into common shares of High North at six cents per share, b) extend their debenture until October, 2016, at a reduced interest rate of 6 per cent, or c) a combination of both a) and b). Redhill has elected to convert its entire principal and interest balance into common shares of High North, and will be receiving approximately 15 million High North common shares upon completion of the plan to satisfy its debenture and interest receivable as at April 4, 2015.
These new shares issued in exchange for the debenture, in conjunction with the High North shares Redhill already owns, brings the total High North shares owned by the company to approximately 20.7 million.
Changes in management
The company has received a notice of resignation from Paul McDougall, the company's chief executive officer. Mr. McDougall is departing for personal reasons effective early July, 2015. Jamie Carlson, president and chief operating office, will continue in his role and will assume Mr. McDougall's duties. The company thanks Mr. McDougall for his time and effort over the last nine months.