Next Green Wave has completed an asset-backed financing with Landrace Financial for a loan in the amount of $5,300,000.
The Loan is for a two-year term. Interest on the Loan will be paid monthly in cash: at a rate of 10.5% per annum; plus the greater of 2.5% and (b) LIBOR rate; plus any default rate. The outstanding principal of the Loan and all outstanding interest thereon will be payable in full on the maturity date. In addition, the Lender will receive a total of 6,500,000 common share purchase warrants having a term of 36 months from the date the Loan is disbursed to NGW (the "Advance Date") exercisable into common shares of NGW (the "Share") at a price of CDN$0.20 per share.
Furthermore, the Company has agreed to a non-brokered private placement of 6,666,666 Shares at a price of CDN$0.15 per Share for gross proceeds of CDN$1,000,000 (the "Financing").
The parties to the Financing are all at arm's-length and there are no finder's fees payable. Closing is subject to a number of conditions, including regulatory approval. All securities will be held for a period of 4-months from closing of the Financing.
The proceeds from the Financing plus CDN$500,000 will be used to reduce outstanding unsecured convertible notes from CDN$3,000,000 to CDN$1,500,000.
Concurrent with the closing of the Financing, the Company will amend the terms of the remaining CDN$1,500,000 of convertible debentures from a conversion rate of CDN$0.388 per share to a price of CDN$0.15.
In addition, the Company will reprice the 7,732,357 share purchase warrants previously issued with the notes (CDN$0.48) to a price of CDN$0.20 per warrant (for a period of 24 months from the date of issue), collectively (the "Re-pricing"). The Re-pricing is also subject to a number of conditions, including regulatory approval.
In addition, 1,000,000 warrants issued on Sep 12, 2019, have been re-priced from $0.35 to $0.25, all other terms remain the same.
The Company has granted 3,530,000 stock options under its stock option plan (the "Grant") exercisable at a price of CDN$0.15 per Share to a director, employees and HR consultants of the Company. As per the Company's stock option plan, the options granted are exercisable until November 19, 2024. The Grant has a vesting period of 25%, every 6 months, for a period of 24 months.
The Company also announces that pursuant to the SDC Purchase Agreement effective Nov 19, 2019 it has released the 16,167,092 SDC shares from escrow.
Disclaimer: Past performance is not an indicator of future performance.
Disclaimer: past performance is not an indicator of future performance
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