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Arianne Phosphate (TSXV:DAN) has announced that it has closed a $3 million loan with a number of third party lenders. As quoted in the press release: The loan will bear interest at 8%, paid semi-annually and has a maturity of 3 years with the Company having the ability to repay the loan after one year …
Arianne Phosphate (TSXV:DAN) has announced that it has closed a $3 million loan with a number of third party lenders.
As quoted in the press release:
The loan will bear interest at 8%, paid semi-annually and has a maturity of 3 years with the Company having the ability to repay the loan after one year at its option. As part of the loan, the Company has issued non-transferable warrants in the amount of 800 per $1,000 face value (for a total of 2,400,000 warrants), with each warrant entitling the holder to purchase one common share of the Company at a price of $1.25 per share for a term of 3 years expiring on September 28, 2019. Additionally, following the expiry of the regulatory hold period, should the closing price of Arianne’s common shares on the TSX Venture Exchange (the “Exchange”) be equal to or higher than $2 for 10 consecutive days, the Company shall have the right to force the exercise of the warrants by providing the warrant holders with a 30-day notice period, following which the warrants will automatically expire.
Brian Ostroff, CEO of Arianne Phosphate, said:
We continue to push forward towards the development of our significant phosphate asset. These additional funds will allow us to add additional staff related to detailed engineering and financing, as well as to continue our ongoing activities centered around discussions with potential partners and funders.” Arianne anticipates closing on a second tranche of this financing within the next few weeks.
Click here to read the full press release.