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Ceylon Graphite Announces Proposed Amendment of Convertible Debentures
VANCOUVER, British Columbia, Jan. 04, 2021 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) w
About this update from Ceylon Graphite Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 04, 2021 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) would like to announce that further to a previous release the Company intends to amend certain terms of the convertible debenture that were issued by the Company on May 23, 2018 (the “Convertible Debentures”). Ceylon Graphite proposes to amend the Convertible Debentures as follows: extending the maturity date of the Convertible Debentures by six (6) months from May 23, 2021 to November 23, 2021. adding a provision whereby the Company will have the option to redeem the Convertible Debentures at any time, on ten (10) days’ notice, without penalty; and increasing the interest rate from 6% to 8%.In consideration for the holders of the Convertible Debentures agreeing to the proposed amendments, the Company is proposing to: convert all of the accrued and future interest into common shares in the Capital of the Company at a price of $0.165 per shares (the “Debt Shares”); and extend the Warrants issued on May 23, 2018 by six (6) months from May 23, 2021 to November 23, 2021. issue an aggregate of one million (1,000,000) warrants (the “Compensation Warrants”) to the debenture holders. Each Compensation Warrant will entitle the holder thereof to acquire one (1) common share in the capital of the Company at an exercise price of $0.22 per share for a period of one (1) year from date of issuance.The proposed amendments are subject to the approval of the holders of the Convertible Debentures as well as the TSX Venture Exchange. The issuance of the Debt Shares and Compensation Warrants are subject to the approval of the TSX Venture Exchange. All securities issued pursuant to the proposed amendments to the Convertible Debentures are subject to a statutory four (4) month hold period. About Ceylon Graphite Corp. Ceylon Graphite is a public company listed on the TSX Venture Exchange, that is in the business of mining for graphite, plus the exploration for and development of graphite mines in Sri Lanka. Graphite mined in Sri Lanka is known to be some of the purest in the world and has been confirmed to be suitable to be easily upgradable for a range of applications including the high-growth electric vehicle and battery storage markets. The Government of Sri Lanka has granted the Company’s wh...