No “Fatal Flaws” at RB Energy’s Quebec Lithium Operation: Technical Review

RB Energy Inc. (TSX:RBI,OTCQX:RBEIF) announced the results of an independent technical process audit of the Quebec Lithium Inc. operation, commenting that it “concluded that there are no ‘fatal flaws.'”

The company also announced a proposed private placement of a minimum of C$78 million and a maximum of $88 million in secured convertible debentures.

As quoted in the press release:

The Debentures will mature on October 31, 2019 (‘Maturity’) and pay a coupon of between 9.0-11.0% per annum from the closing date of the Offering, payable semi-annually in cash in arrears on the last day of June and December of each year.

The Debentures will be convertible at the holder’s option into RBI common shares at any time prior to the close of business on the earlier of Maturity and the business day immediately preceding the date fixed for redemption of the Debentures. The Debentures will convert at a conversion price of C$0.50 per RBI common share (the ‘Conversion Price’), being a ratio of 2,000 RBI common shares per C$1,000 principal amount of Debentures, subject to adjustment in certain events.

At any time prior to Maturity, the Company may, at its option, at any time and from time to time, subject to providing not more than 60 and not less than 30 days’ prior notice, redeem up to 50% of the principal amount of the Debentures, in whole or in part, at par plus accrued and unpaid interest provided that the weighted average closing price of RBI common shares on the Toronto Stock Exchange (the ‘TSX’) during the 20 consecutive trading days ending five trading days preceding the date on which the notice of redemption is given is not less than between 140-175% of the Conversion Price.

Click here to read the full RB Energy Inc. (TSX:RBI,OTCQX:RBEIF) press release.