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Colt Resources Inc. (TSXV:GTP,FWB:P01,OTC:COLTF) reported its offer to convert shares of its senior secured debt of US$2,700,000 to all of its existing senior secured note holders. In connection with this, Colt entered an agreement with Mr. Richard Quesnel, one of the note holders, to issue 14,233,857 units at a deemed price of CA$0.175 per Unit in payment of a US$2,000,000 senior secured note and all accrued interest.
As quoted in the press release:
Colt Resources Inc. (“Colt” or the “Company”) (TSXV:GTP) (FWB:P01,OTC:COLTF) is pleased to announce that it has made an offer for conversion in shares of its senior secured debt in the aggregate principal amount of US$2,700,000 to all of its existing senior secured note holders, and that, in connection therewith, Colt has entered into an agreement (the “Agreement”) with one of the note holders, Mr. Richard Quesnel (the “Creditor”). Pursuant to the Agreement and subject to TSX Venture Exchange approval, Colt will issue to the Creditor 14,233,857 units (the “Units”) at a deemed price of CA$0.175 per Unit in payment of a US$2,000,000 senior secured note and all accrued interest thereon at the date of the Agreement in the amount of US$72,877. The Company elected to satisfy this outstanding indebtedness with Units to preserve its cash for operations.
Each Unit will be comprised of one common share and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire for a period of three years one common share of Colt at a price of CA$0.25 per common share. The securities issued to the Creditor will be subject to a four-month plus one day statutory resale restriction.
Colt may proceed with additional conversion of senior notes in shares upon similar terms in the event that other note holders accept the conversion offer. In that case, the outstanding aggregate principal amount of US$700,000 of senior secured notes and all accrued interest thereon in the amount of US$ 25,508 could be converted in consideration for the issuance of up to 4,974,908 Units.
Click here to read the Colt Resources Inc. (TSXV:GTP,FWB:P01,OTC:COLTF) press release
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