Business
Inventus Announces Up to $2,000,000 Convertible Debt Financing
TORONTO, ONTARIO--(Marketwired - Feb. 25, 2016) - Inventus Mining Corp. ("Inventus" or the "Company") (TSX VENTURE:IVS) is pleased to announce it has arranged a
About this update from Inventus Mining Corp.
[{"type":"text","content":" TORONTO, ONTARIO--(Marketwired - Feb. 25, 2016) - Inventus Mining Corp. (\"Inventus\" or the \"Company\") (TSX VENTURE:IVS) is pleased to announce it has arranged a non-brokered private placement of up to C$2.0 million in principal amount of senior secured convertible debentures (the \"Offering\") at a price of C$100,000 and integral multiples thereof per debenture (\"Debentures\"). The Debentures will have an interest rate of 8% per year, calculated semi-annually from their date of issuance and will mature on the date that is two (2) years from the date of issuance (the \"Maturity Date\"). At the option of the lenders, principal under the Debenture is convertible (the \"Conversion\") into common shares of Inventus (the \"Conversion Shares\") at a conversion price of C$0.05 per Conversion Share, however, the lenders may only exercise their right to Conversion following completion of a consolidation (the \"Consolidation\") of the common shares of Inventus on a minimum basis of two (2) (old) common shares for one (1) (new) common share, and up to or on the Maturity Date. In the event the Consolidation is not completed on or prior to June 15, 2016, it will constitute an event of default pursuant to the terms of the Debenture. Certain insiders of the Company may participate in the Offering. The Company intends to use the net proceeds of the Offering on the development of its bulk sampling program at its flagship Pardo gold project, located 65 kilometres north east of Sudbury, Ontario, and for general working purposes. The Offering is expected to close on or about the week of March 14, 2016. Closing of the Offering would be subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange (\"TSXV\"). The securities issued pursuant to the Offering will be subject to a statutory four month and one day hold period. In connection with the Offering, Mr. Wayne Whymark, Chairman and Chief Executive Officer of Inventus, intends to acquire a flow-through special warrant in the amount C$250,000 exercisable at the same Conversion price as the Debenture. Mr. Whymark currently owns, directly and indirectly, 2,818,168 common shares of Inventus, representing approximately 3.3% of the outstanding common shares of the Company on an undilute...