Business
Lupaka Provides Update on Non-Brokered Private Placement Terms, and Takes Measures to Improve Balance Sheet Liquidity
VANCOUVER, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Lupaka Gold Corp. ("Lupaka Gold" or the “Company") (TSX-V: LPK, FRA: LQP) announces that the Comp
About this update from Lupaka Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Lupaka Gold Corp. (\"Lupaka Gold\" or the “Company\") (TSX-V: LPK, FRA: LQP) announces that the Company has updated the terms of the non-brokered private placement of units (“Units”) originally announced on January 28, 2019 and has taken additional steps to significantly improve the Company’s liquidity. Non-brokered Private Placement The Company will be raising up to $1,000,000 by way of a non-brokered private placement (the “Offering”, or “Private Placement”). Each Unit will be priced at $0.06 and will consist of one common share of the Company and one transferable common share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder to acquire one common share of the Company at a price of $0.10 for a period of 30 months from the date of the closing of the Offering. Proceeds from the Offering are intended to be used for general working capital purposes and to continue working with the government to resolve the illegal blockade of Invicta. Liquidity Improvement Program In conjunction with the Private Placement, the Company has implemented a program to significantly improve its liquidity. Under the liquidity improvement program (“LIP”) approximately $850,000 in bridge loans and short-term accounts payable in Canada will be converted into Units with the same terms as the Private Placement. Furthermore, an additional $450,000 of current accounts payable will be restructured into long-term notes, conditionally payable based on achieving future production thresholds at Invicta. “We are extremely grateful and encouraged by the overwhelming support received from our business partners and lenders in Canada, including the bridge loan holders. Their willingness to convert debt to equity in Lupaka is a true testament to quality of the Invicta project,” commented Will Ansley, President and CEO of Lupaka Gold Corp. “The undertaking of the LIP in conjunction with the private placement will improve the liquidity of the Company by as much as $2.3 million. The funds raised will be instrumental in the pursuit to resolve the illegal road blockade at Invicta.” The closing of the Offering, and the issuance of the Common Shares in this shares-for-debt transaction is expected to occur on or before March 13, 2019 and is subject to receipt o...