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Colibri Announces Non-Brokered Private Placement of 8% Unsecured Convertible Debentures
Dieppe, New Brunswick--(Newsfile Corp. - April 20, 2020) - Colibri Resource Corporation (TSXV:...
About this update from Colibri Resource Corporation
[{"type":"text","content":"Colibri Announces Non-Brokered Private Placement of 8% Unsecured Convertible DebenturesDieppe, New Brunswick--(Newsfile Corp. - April 20, 2020) - Colibri Resource Corporation (TSXV: CBI) (\"Colibri\" or the \"Company\") is pleased to announce that it intends to conduct a non-brokered private placement (the \"Offering\") of 8% unsecured convertible debentures (the \"Convertible Debentures\") for total gross proceeds of up to $300,000 (Canadian) at a price of $1,000 and integral multiples thereof per Convertible Debenture.The net proceeds of the Offering will be used for working capital and drilling on the Evelyn and El Mezquite projects.The Offering of the Convertible Debentures is anticipated to close on or before April 30, 2020 (the \"Closing\").The Convertible Debentures will bear interest at 8% per annum, calculated in Canadian dollars, from the date of issuance, payable in arrears quarterly and upon maturity or redemption. The Convertible Debentures will mature on the date that is two (2) years from the date of issuance (the \"Maturity Date\").The Convertible Debentures and accrued interest thereon are convertible into common shares (\"Common Shares\"), at the holder's option, at a price of (i) $0.05 per Common Share between the Closing and 12 months; and (ii) at $0.075 per Common Share between 12 months and one day to the Maturity Date (the \"Conversion Price\"), subject to adjustment in certain events, at any time prior to the Maturity Date.The Company may redeem, in cash, any or all of the Convertible Debentures at any time prior to the Maturity Date upon not less than 30 days prior written notice for an amount equal to the principal amount of the Convertible Debentures plus accrued interest.A director of the Company has indicated an intention to subscribe for up to $100,000 principal amount of Convertible Debentures, thereby making a portion of the Offering a \"related party transaction\" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). This portion of the Offering will, however, be exempt from the need to obtain minority shareholder and a formal valuation as required by MI 61-101 as the Company is listed on the TSX Venture Exchange and the fair market value of the Convertible Debentures to insiders or the consideration paid by insiders of th...