Business
Burcon Announces Amendment to Outstanding Convertible Note
Vancouver, British Columbia--(Newsfile Corp. - May 21, 2019) - Burcon NutraScience Corporation...
About this update from Burcon Nutrascience Corporation
[{"type":"text","content":"Burcon Announces Amendment to Outstanding Convertible NoteVancouver, British Columbia--(Newsfile Corp. - May 21, 2019) - Burcon NutraScience Corporation (TSX: BU) (\"Burcon\") announced today that it has amended (the \"Amendment\") the convertible note (the \"Note\") dated May 12, 2016 issued to Large Scale Investments Limited (the \"Lender\"), a wholly-owned subsidiary of Firewood Elite Limited (\"Firewood\"), in the principal amount of $2,000,000 (the \"Principal Amount\") to extend the maturity date of the Note from May 11, 2019 to June 21, 2019. For additional details on the Note see Burcon's material change report dated April 8, 2019 and press release dated May 12, 2016, both of which are available on SEDAR at www.sedar.com.The Amendment also provides the Lender with a right to offset any amounts due to it under the Note against any obligations of the Lender to pay for subscription proceeds of any rights offering that Burcon may conduct. As a result of the Amendment, an additional $22,306.69 in interest will be payable to Large Scale under the Note up to the new maturity date, representing less than 0.08% of the market capitalization of Burcon as of May 17, 2019. The Amendment was conditionally approved by the TSX on May 17, 2019. Firewood is wholly-owned by Mr. Alan Chan, a director of Burcon, and is an insider and related party of Burcon as it currently holds, through its wholly-owned subsidiaries, 11,433,287 common shares of Burcon (\"Common Shares\"), representing approximately 26.02% of the outstanding Common Shares. In addition, Mr. Alan Chan and Ms. Rosanna Chau, directors of Burcon, are also directors of the Lender. The Amendment is considered a \"related party transaction\" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). Burcon is relying on the exemption available under Section 5.7(a) of MI 61-101 from the minority shareholder approval requirement with respect to the Amendment. Additionally, the Amendment is exempt from the formal valuation requirement of MI 61-101 since it is a related party transaction under section (h) of the \"related party transaction\" definition of MI 61-101. The Amendment was approved by the independent members of the board of directors of Burcon, with Mr. Alan Chan and Ms. Rosanna Chau abstaining from the vote. ...