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Cathedra Bitcoin Announces Favorable Debt Restructuring, Retiring C$5.7m of Convertible Debt at a Discount and Cancelling 10.9m Warrants
Toronto, Ontario--(Newsfile Corp. - March 24, 2025) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTCQB: ...
About this update from Cathedra Bitcoin Inc
[{"type":"text","content":"Cathedra Bitcoin Announces Favorable Debt Restructuring, Retiring C$5.7m of Convertible Debt at a Discount and Cancelling 10.9m WarrantsToronto, Ontario--(Newsfile Corp. - March 24, 2025) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTCQB: CBTTF) (the \"Company\" or \"Cathedra\"), a bitcoin company that develops and operates digital infrastructure assets is pleased to announce that it has favorably restructured its outstanding indebtedness as set forth below. The Company entered into a repayment agreement dated March 19, 2024 (the \"Repayment Agreement\"), with the holder (the \"Creditor\") of the outstanding 3.5% senior secured convertible debentures of the Company due November 11, 2025 (the \"Debentures\"), pursuant to which, the Company paid the Creditor C$4,586,982 (the \"Repayment Amount\") plus accrued interest to settle the entire outstanding principal amount of the Debentures of C$5,733,728 (the \"Outstanding Principal Amount\"), implying a 20% discount to par on the Outstanding Principal Amount. In addition, the Creditor agreed to surrender 10,897,000 warrants of the Company (the \"Warrants\") to the Company for cancellation. Each Warrant was exercisable for one subordinate voting share of the Company (a \"Warrant Share\") at a price of C$0.12 per Warrant Share until November 11, 2026, subject to acceleration in certain circumstances. The Company has entered into a new loan of US$2,494,693 (the \"Loan\") to partially repay the Outstanding Principal Amount of the Debentures. The Loan is secured by approximately 50 of the Company's bitcoin; carries interest at a rate of 13.0% per annum, payable monthly; and is interest-only until maturity on March 18, 2026. By retiring the Debentures at a discount with a mix of proceeds from the Loan and cash on-hand, the Company has reduced its outstanding debt obligations by approximately C$2,155,800; prevented potential dilution by eliminating 10,897,000 warrants at no additional cost; and replaced the all-asset lien from the Debentures with a more favorable security arrangement under the new Loan consisting of only 50 bitcoin, freeing the Company to manage its balance sheet with greater flexibility.About Cathedra Bitcoin Inc.At time of publishing, the Company holds approximately 52.5 bitcoin worth approximately US$4.4 million and amounting to approximately 6 satoshis (or \"sats\") per share....