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Madalena Announces Entering into of Amended Loan Agreements
(All dollar figures are expressed in United States Dollars, unless otherwise noted) Buenos...
About this update from Centaurus Energy Inc.
[{"type":"text","content":"Madalena Announces Entering into of Amended Loan Agreements(All dollar figures are expressed in United States Dollars, unless otherwise noted)Buenos Aires, Argentina--(Newsfile Corp. - April 9, 2019) - Madalena Energy Inc. (TSXV: MVN) (OTCQX: MDLNF) (\"Madalena\" or the \"Company\") is pleased to announce that the Company has entered into an amended and restated convertible loan agreement (the \"Amended and Restated Loan Agreement\") with KD Energy International Capital Limited (\"KD Energy\") and Hispania Petroleum S.A. (\"Hispania\") and has extended the term of the working capital loan agreement between the Company and Hispania (the \"Working Capital Loan Agreement\").The Amended and Restated Loan Agreement replaces the convertible loan agreement entered into between Hispania and the Company on May 8, 2017, which was subsequently assigned by Hispania to KD Energy (the \"Capex Loan Agreement\"). Key amendments include an extension of the expiry date from May 8, 2020 to May 8, 2023, a change in the conversion price to CAD 0.225 (subject to adjustment), the right of KD Energy to designate Jose David Penafiel and one additional representative to the board of directors during the term of the Amended and Restated Loan Agreement, and an expansion to the purposes for which the Company can draw on the loan to include acquisitions of oil and gas assets, subject to consent of KD Energy. The expiry date of the Working Capital Loan Agreement which is in the aggregate amount of $6.5 million and carries an interest rate of 7% per annum has also been extended to May 8, 2023.The Amended and Restated Loan Agreement provides for the original multi-drawdown convertible loan of up to $16.5 million, with interest accruing at 7% per annum, with each drawdown and accrued interest repayable thirty-six months after drawdown. The Amended and Restated Convertible Loan is convertible into units (\"Units\") with each Unit comprised of one common share of the Company (\"Common Share\") and 0.22 of a Common Share purchase warrant (\"Warrant\"), with each Warrant entitling the holder to purchase an additional Common Share with an exercise price of CAD 0.225 for a period of 18 months after the date of issuance.\"We are pleased with the new terms of the loan agreements\" commented Gus Halas, the Company's Non-Executive Chairman. \"These agreements send a stron...