Business
Deferral of Payment Obligation Under Convertible Debenture
VANCOUVER, BC / ACCESSWIRE / November 11, 2022 / SouthGobi Resources Ltd. (TSX:SGQ)(HK:1878)...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"Deferral of Payment Obligation Under Convertible DebentureVANCOUVER, BC / ACCESSWIRE / November 11, 2022 / SouthGobi Resources Ltd. (TSX:SGQ)(HK:1878) (\"SouthGobi\" or the \"Company\") announces that reference is made to the announcement of the Company dated August 31, 2022 (the \"Announcement\") in relation to a private sale transaction among JD Zhixing Fund L.P. (\"JDZF\"), Land Breeze and Fullbloom (the \"Sale Transaction\") on August 30, 2022. Unless otherwise specified, terms used in this announcement shall have the meaning as defined in the Announcement.Upon the completion of the Sale Transaction, JDZF became the registered holder of the Company's US$250 million Convertible Debenture issued on November 19, 2009 (the \"Convertible Debenture\"). The rights and obligations under (i) the Convertible Debenture and related security documents; (ii) the Cooperation Agreement and related documents; (iii) the deferral agreements between Land Breeze, the Company and certain of its subsidiaries in connection with the deferral of interest payments and other outstanding fees under the Convertible Debenture and the Cooperation Agreement; and (iv) the security holders agreement between the Company, Land Breeze and a former shareholder of the Company, were assigned to JDZF effective as of August 30, 2022.The Company announces that, on November 11, 2022, the Company entered into a new deferral agreement (the \"2022 November Deferral Agreement\") with JDZF, pursuant to which JDZF agreed to grant the Company (i) a deferral of the interest payments which will be due and payable on November 19, 2022 under the Convertible Debenture; and (ii) a deferral of the management fees under the Amended and Restated Cooperation Agreement.The effectiveness of the 2022 November Deferral Agreement and the respective obligations, covenants and agreements of each party under the 2022 November Deferral Agreement are subject to the Company obtaining the requisite acceptance thereof from the Toronto Stock Exchange.The principal terms of the 2022 November Deferral Agreement are as follows:JDZF agreed to grant the Company a deferral of the following payments until November 19, 2023:(i) a deferral of US$7,065,753 out of the semi-annual cash interest payment in the accrued sum of US$8,065,753 payable to JDZF on November 19, 2022 under the Convertible Debenture (the \...