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Euro Sun Mining Announces Closing of First Tranche of Private Placement, Waiver Agreement Related to Secured Lending Facilities and Management Changes
TORONTO, Dec. 01, 2022 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce that it has closed the first tra
About this update from Euro Sun Mining Inc.
[{"type":"text","content":" TORONTO, Dec. 01, 2022 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce that it has closed the first tranche (the “First Tranche”) of its previously announced non-brokered private placement financing (the “Offering”). An aggregate of 41,790,000 common shares (the “Common Shares”) were sold under the First Tranche at a price of C$0.05 per Common Share for aggregate gross proceeds of approximately C$2,089,500. Euro Sun intends to use the proceeds of the Offering for general corporate purposes. All securities issued in connection with the Offering are subject to a statutory hold period of four-months and one day. In addition, as previously announced, certain changes were made to the board of directors effective as at closing of the Offering. The board of directors of the Company currently consists of Danny Callow, David Danziger, Bruce Humphrey, Scott Moore, Paul Perrow, Neil Said and Grant Sboros. The Offering and the closing of the First Tranche are subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities. All securities issued and issuable in connection with the Offering are subject to a hold period of four months plus one day from the date of issuance. No finders’ fees were paid in connection with the closing of the First Tranche. Secured Lending Facilities Euro Sun is further pleased to announce that it has entered into a waiver and consent agreement (the “Waiver Agreement”) with its secured lender, Lind Global Fund II, LP (“Lind”) on a conditional basis. Pursuant to the Waiver Agreement, Lind has agreed to waive, for a period of six months from the date of closing of the Offering, certain rights pertaining to the Convertible Security Funding Agreement dated February 18, 2022 and a Convertible Security Funding Agreement dated July 8, 2022, each between Euro Sun and Lind (collectively, the “CSFAs”). These rights include: (i) the right of Lind to terminate the CSFAs in respect of a change of control event, and (ii) a historical event of default in respect of overdue and unpaid liabilities of Euro Sun in the amount of more than $250,000. Under the CSFAs, an event of default arises where there is a “Change of Control Event” whi...