Business
Kovo Completes Shares for Debt Transaction
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2024) - Kovo Healthtech Corporation (TSXV...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"\nKovo Completes Shares for Debt TransactionVancouver, British Columbia--(Newsfile Corp. - July 24, 2024) - Kovo Healthtech Corporation (TSXV: KOVO) (\"Kovo\" or the \"Corporation\") is pleased to announce that, further to its news release dated May 20, 2024, the TSX Venture Exchange (the \"TSXV\") has approved the Corporation's previously announced debt conversion transaction (the \"Debt Conversion Transaction\") and the Corporation settled outstanding debt in the aggregate amount CDN$2,257,229.56 owing to its largest secured creditor, Avonlea Ventures #2 Inc. (\"AVI\") by issuing 57,543,906 common shares in the capital of the Corporation (\"Common Shares\") at a deemed issue price per Common Share equal to $0.035 and 4,863,861 Common Shares at a deemed issue price per Common Share equal to $0.05. In aggregate, 62,407,767 Common Shares (the \"Settlement Shares\") were issued to AVI and are subject to a customary four month plus one day hold period. Upon the TSXV acceptance of the Debt Conversion Transaction: (i) the forbearance agreement dated February 27, 2024 between Kovo and AVI terminated and the Corporation is no longer subject to the default interest rate provided for in the senior loan and security agreement dated as of April 20, 2023 (the \"Loan Agreement\"); and (ii) the amendment and restatement of the Loan Agreement (the \"Amended and Restated Loan Agreement\") is deemed effective and, among other things, extends the maturity date of the remaining indebtedness owed to AVI (the \"Remaining Indebtedness\") to April 30, 2025 and provides AVI with the right to convert the Remaining Indebtedness into Common Shares (the \"Additional Conversion Right\") at a fixed price of CDN$0.05 per share (the \"Loan Agreement Amendments\", with the Debt Conversion Transaction and the Loan Agreement Amendments collectively, the \"Transaction\"). As a condition to obtaining the TSXV acceptance, the Corporation and AVI filed undertakings with the TSXV confirming that: (i) Kovo has not and will not make any adjustments to the outstanding equity incentive awards issued under the Corporation's equity incentive plan as a consequence of or in respect of the Transaction; and (ii) AVI shall not exercise its Additional Conversion Right unless, after such conversion, Kovo continues to meet the applicable Continued Listing Requirements in accordance...