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Euromax Resources Announces Closing of Issuance of Additional Securities to EBRD in Connection with Partial Repayment of Debt
VANCOUVER, BC, Sept. 10, 2024 /CNW/ - Euromax Resources Ltd. (TSXV: EOX): ("Euromax" or the "Company"), announces today that further to its news release dated A
About this update from Euromax Resources Ltd.
[{"type":"text","content":" VANCOUVER, BC, Sept. 10, 2024 /CNW/ - Euromax Resources Ltd. (TSXV: EOX): (\"Euromax\" or the \"Company\"), announces today that further to its news release dated August 6, 2024, it has now completed the issuance of 12,292,899 units of the Company (the \"Units\") to the European Bank for Reconstruction and Development (\"EBRD\") pursuant to the debt settlement agreement entered into between the Company and EBRD on August 5, 2024 (the \"DSA\"). Each Unit consists of one common share in the capital of the Company (each, a \"Common Share\") and one Common Share purchase warrant (each, a \"Warrant\"), and was issued at a deemed offering price of C$0.02 per Unit (collectively, the \"Transaction\"). Each Warrant is exercisable for one Common Share for a period of five years from the date of issuance, at an exercise price of C$0.05. Pursuant to the DSA, the Company agreed to issue the Units in order to repay C$245,857.98 to EBRD, representing a portion of the outstanding debt owing to the EBRD under the convertible debenture issued by the Company to EBRD in principal amount of USD$5 million, as amended (the \"Debenture\"). The Units issued pursuant to the Transaction, and any Common Shares issued in connection with the exercise of Warrants, if any, will be subject to a hold period of four months and one day from the date of issuance, expiring on January 10, 2024, in accordance with the policies of the TSX Venture Exchange (the \"TSXV\") and applicable securities laws. The Transaction is not expected to materially affect control of the Company. As EBRD is a related party of Euromax, in completing the Transaction, the Company is relying on the exemptions from the formal valuation and minority approval requirements of Policy 5.9 of the TSXV and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") in respect of related party transactions contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively. The Company will file a material change report in respect of the Private Placement within the timeline prescribed by applicable securities laws. The Company did not issue a material change report more than 21 days before the closing of the Private Placement because the transaction was under consideration by the TSXV and closing was conditional on receipt of TSXV approval. Prio...