Business
KWG Resources Announces Closing of Final Tranche of Its Convertible Debenture Private Placement
Toronto, Ontario--(Newsfile Corp. - August 27, 2019) - KWG Resources Inc. (CSE: KWG) (FSE: KW6) ("KWG" or the "Corporation") is pleased to announce closing on A
About this update from Canadian Chrome Company Inc.
[{"type":"text","content":"Toronto, Ontario--(Newsfile Corp. - August 27, 2019) - KWG Resources Inc. (CSE: KWG) (FSE: KW6) (\"KWG\" or the \"Corporation\") is pleased to announce closing on August 26, 2019 of the final tranche of its private placement (the \"Private Placement\") of convertible debentures. This tranche was comprised of an aggregate of $395,450 of debentures, bringing the total principal amount of debentures issued under the various tranches of the Private Placement to $3,775,405.83. The debentures are convertible, at the option of KWG at any time or at the option of the holder within 30 days prior to maturity or redemption, into units (each a \"Unit\") with a deemed value of $21 per Unit. Each subscriber received an option to acquire an equal amount of additional debentures at any time within four (4) months from closing. 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 on or before December 15, 2019. 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 voting shares from treasury at their volume-weighted average price (\"VWAP\") for the ten trading days prior to payment. The debentures secure repayment of the principal, plus interest earned thereon to the date of payment, plus a bonus of 20% of the original principal amount payable immediately following issuance of the debenture by the issuance of Units with a deemed value of $21 per Unit. At any time and from time to time, KWG will have the right to redeem the debentures in whole or in part by payment in cash, or convert the debentures in whole or in part into Units. The proceeds received by the Corporation from the sale of the debentures will be used for the costs and fees associated with this tranche of the Private Placement and for general corporate overhead expenses including repaying current debts and liabilities. The working capital deficiency and balance sheet of the Corporation will be improved, which should facilitate future financings or other transactions. All of the securities to be issued pursuant to this tranche of the Private Placement are sub...