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Arius Research announces extension of warrants and early repayment of loan facility with Xmark
Arius Research announces extension of warrants and early repayment of loan facility with Xmark.
About this update from Affinity Metals Corp
[{"type":"text","content":"\n\n\n\n\nTORONTO, Nov. 17 /CNW/ - ARIUS Research Inc. (\"ARIUS\" or the \"Company\")\n(TSX: ARI), wishes to announce that effective November 30, 2006, the expiry\ndate of 2,224,125 common share purchase warrants (the \"Warrants\") issued to\nXmark Opportunity Fund, Ltd. Xmark JV Investment Partners, LLC, and Xmark\nOpportunity Fund, L.P. (collectively, \"Xmark\") will be extended from\nDecember 12, 2007 to December 31, 2008.\nThe Warrants were issued pursuant to a credit agreement (the \"Credit\nAgreement\") dated December 9, 2005 between ARIUS and Xmark whereby Xmark\nprovided to ARIUS a convertible bridge loan facility in the amount of\nUS$2,000,000 (the \"Loan Facility\"). The Loan Facility is convertible into\ncommon shares of ARIUS (\"Common Shares\") at a price of Cdn$0.80 per share at\nany time on or before December 14, 2007 and bears an annual interest rate of\n13.25% which is payable in cash or Common Shares at the option of ARIUS. The\nCredit Agreement does not provide the Company with the right to prepay the\nLoan Facility prior to its maturity.\nARIUS and Xmark have agreed that, subject to an extension of the expiry\ndate of the Warrants to December 31, 2008, ARIUS will be permitted to redeem\nthe Loan Facility. Upon the extension of the Warrants on November 30, 2006,\nthe Company intends to repay the Loan Facility. ARIUS intends to pay the\nprincipal amount of the Loan Facility in cash, and to repay the amount of\naccrued and unpaid interest on the Loan Facility by issuing Common Shares to\nXmark. The number of Common Shares to be so issued will be based on the volume\nweighted average price for the 5-day trading period immediately prior to the\ndate on which the Loan Facility is repaid. As of November 30, 2006, the amount\nof accrued and unpaid interest owing to Xmark under the Loan Facility will be\napproximately US$123,000.\n\"The repayment of this loan is in the best interests of ARIUS given the\nhigh interest rate\" said Dr. David S. Young, President and Chief Executive\nOfficer of ARIUS.\nThe Toronto Stock Exchange (the \"TSX\") has conditionally accepted the\nproposed amendment to the term of the Warrants subject to certain conditions\nincluding the approval of a majority of disinterested shareholders (i.e.,\nthose shareholders other than Xmark) for such amendment to extend. Approval of\na majority of disint...