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LGC Capital to enter into Convertible Loan Agreement for US$2,340,000
LGC Capital to enter into Convertible Loan Agreement for US$2,340,000 Canada NewsW...
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[{"type":"text","content":"\n\n\n\nLGC Capital to enter into Convertible Loan Agreement 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. 19, 2019\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES/\n MONTREAL, Feb. 19, 2019 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) and (OTC-PINK: LGGCF) (\"LGC\" or the \"Corporation\") is pleased to announce that it will enter into an investment agreement (the \"Investment Agreement\") with international investors YA 11, PN, Ltd. and RiverFort Global Opportunities PLC (the \"Lenders\") pursuant to which they will loan LGC an aggregate amount of US$2,340,000 (the \"Loan\").  The Loan will have a term of 12 months and will bear interest at an annual rate of 12% The proceeds of the loan will be used to refinance upcoming debt maturity.\nThe principal amount of the Loan will 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.  The closing price of the Shares on February on February 15, 2019 was CAD$0.09.\nThe Corporation will also issue common share purchase warrants (the \"Warrants\") to the Lenders in 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 shall entitle the holder thereof to acquire one Share at an exercise price of CAD$0.115, for a period of one year from the date of issuance.\nThe Investment Agreement contains standard representations, warranties and covenants of the parties.  Closing of the transaction and the issuance of all Shares pursuant thereto is subject to the conditional approval of the TSX Venture Exchange. The parties intend to close the tra...