Business
KWG Announces Delay in Filing Under COVID-19 Duress; Seeks Approval for Issue of $3 Million of Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - April 28, 2020) - KWG Resources Inc. (CSE: KWG) (CSE: KWG.A) (FSE: KW6) ("KWG" or the "Company") announces that due to circu
About this update from Canadian Chrome Company Inc.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - April 28, 2020) - KWG Resources Inc. (CSE: KWG) (CSE: KWG.A) (FSE: KW6) (\"KWG\" or the \"Company\") announces that due to circumstances created by the COVID-19 pandemic, the Ontario Securities Commission and other members of the Canadian Securities Administrators granted \"Issuers\" in the Canadian securities industry up to an additional 45 days, to complete year-end statutory filings (the \"Extension\"). The Company does not believe that it will be able to file its December 31, 2019 audited annual financial statements by its usual 120-day deadline of April 29, 2020, and will be relying on the Extension. Accordingly, as required by the conditions of the Extension, the Company's management and other insiders will be subject to a trading black-out that reflects the principles in Section 9 of National Policy 11-207 until its financial statements are filed, which will be by June 13, 2020. Other than as previously disclosed by the Company in news releases, including the information herein, there are no other material business developments since the date of the Company's most recent filing of its interim financial statements and management discussion and analysis for its Q3 ended September 30, 2019. The Company will be providing an update news release on the status of filing its December 31, 2019 audited financial statements by May 29, 2020. Listing approval sought for additional Convertible Debenture issue after filingThe Company will also seek regulatory approval for the issue after filing of the audited financial statements, of $3 million of Convertible Debentures to be pari passu with previously-issued debentures maturing March 31, 2021. Within that time all or part of the sum secured by the debentures are convertible at the option of the Company into units with a deemed value of $21 per unit (each a \"Unit\"). Each Unit is comprised of four (4) KWG.A multiple voting shares and four (4) multiple voting share purchase warrants, with each such warrant enabling its holder to acquire one further KWG.A multiple voting share from treasury upon payment of $7.50 at any time within two years from the date of its issuance. The debentures bear interest at a rate of 12% per annum, accruing daily, compounding annually and payable at the earlier of maturity, redemption or conversion, in KWG.A multiple votin...