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LGC Capital Completes Convertible Loan Transaction for US$2,340,000
LGC Capital Completes Convertible Loan Transaction for US$2,340,000 Canada NewsWir...
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[{"type":"text","content":"\n\n\n\nLGC Capital Completes Convertible Loan Transaction for US$2,340,000\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTREAL, Feb. 28, 2019\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES/\n MONTREAL, Feb. 28, 2019 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) (OTC-PINK: LGGCF) (\"LGC\" or the \"Corporation\") is pleased to announce that, following receipt of conditional approval from the TSX Venture Exchange, it has now closed its previously announced convertible loan transaction with international investors YA II, PN, Ltd. and RiverFort Global Opportunities PLC (the \"Lenders\") pursuant to which they have loaned to LGC an aggregate amount of US$2,340,000 (the \"Loan\"). The proceeds of the Loan have been be used to refinance existing debt maturity.\nThe Loan has a term of 12 months with one-half of the principal amount outstanding payable in six equal monthly installments beginning on the date falling six months from the date of closing and the remaining outstanding amount payable in a single installment at maturity.  The Loan bears interest at an annual rate of 12%, payable in cash on the date which is three months from the date of closing and, thereafter, on each date on which a repayment of principal is made.\nThe principal amount of the Loan may be convertible into common shares of LGC (the \"Shares\") at the option of the Lenders at a price per Share equal to the lesser of (i) US$0.0912 (CAD$0.120), representing the US dollar equivalent of 120% of CAD$0.10; and (ii) 90% of the lowest daily VWAP during the five trading days immediately preceding the date of the conversion notice from the Lenders, subject to a minimum conversion price of US$0.076, representing the US dollar equivalent of CAD$0.10.\nAt closing, the Corporation issued an aggregate of 12,048,055 common share purchase warrants (the \"Warrants\") to the Lenders, representing an amount equal to 45% of the principal amount of the Loan divided by US$0.0874, representing the US dollar equivalent of CAD$0.115.  Each Warrant entitles the hol...