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First Cobalt to Issue Shares to Glencore in Repayment of Loan
First Cobalt to Issue Shares to Glencore in Repayment of Loan Canada NewsWire ...
About this update from Electra Battery Materials Corp
[{"type":"text","content":"\n \n \n \n First Cobalt to Issue Shares to Glencore in Repayment of Loan\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n TORONTO\n \n ,\n \n March 26, 2021\n \n /CNW/ -\n \n First Cobalt Corp.\n \n (TSXV: FCC); (OTCQX: FTSSF) (the\n \n \"Company\"\n \n ) today announced that it has entered into a loan amendment agreement with Glencore AG on\n \n March 25, 2021\n \n to repay an existing loan of approximately\n \n US$5.5 million\n \n of debt by issuing common shares of the Company. The common shares to be issued to Glencore in connection with the repayment of the loan represents approximately 4.8% of the current outstanding shares of First Cobalt.\n \n \n \n \n \n \n \n \n \n In\n \n August 2019\n \n , First Cobalt entered into a loan agreement with Glencore to fund engineering studies, metallurgical testwork and permitting activities for an expansion of the Company's refinery in\n \n Ontario, Canada\n \n to produce battery grade cobalt sulfate. The loan bears interest at LIBOR plus 5%, with all accrued interest having been capitalized to date. The loan agreement includes a right (the \"conversion right\") for Glencore to convert all or a portion of the balance owing into common shares at a discount of 15% of the \"market price\" of the common shares (determined with reference to the policies of the TSX Venture Exchange) on the maturity date of\n \n August 23\n \n , 2022. The loan agreement provides the Company with the right to prepay the loan prior to maturity. The amendments expressly permit First Cobalt to repay the loan by issuing common shares on broadly similar terms to the conversion right.\n \n \n Specifically, under the terms of today's amending agreement, the Company and Glencore have agreed to expressly allow the Company to voluntarily repay all amounts outstanding through the issuance of common shares. Accordingly, the Company and Glencore have agreed that, subject to the terms of the amended loan agreement, the Company may repay the loan representing an outstanding debt of\n \n US$5,505,830\n \n by issuing 23...