Business
Deferral Of Payment Obligation Under Convertible Debenture
VANCOUVER, BC / ACCESSWIRE / May 13, 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 / May 13, 2022 / SouthGobi Resources Ltd. (TSX:SGQ) (HK:1878) (\"SouthGobi\" or the \"Company\") announces that announces that, on May 13, 2022, the Company and Land Breeze II S.à.r.l. (\"Land Breeze\"), a wholly-owned subsidiary of a major shareholder of the Company (the \"Major Shareholder\"), signed a new deferral agreement (the \"2022 May Deferral Agreement\") pursuant to which Land Breeze agreed to grant the Company a deferral of the interest payments which are due and payable on May 19, 2022 under the convertible debenture dated November 19, 2009 (the \"Convertible Debenture\").The effectiveness of the 2022 May Deferral Agreement and the respective obligations, covenants and agreements of each party under the 2022 May Deferral Agreement are subject to the Company obtaining the requisite acceptance thereof from the Toronto Stock Exchange (the \"TSX\").The principal terms of the 2022 May Deferral Agreement are as follows:Land Breeze agreed to grant the Company a deferral (the \"Deferral\") of the following payments until August 31, 2023 (the \"Deferral Date\"):a Deferral of semi-annual cash interest payment of US$7,934,247 payable to Land Breeze on May 19, 2022 (the \"Deferred Amounts\") under the Convertible Debenture and a deferral fee equal to 6.4% per annum on the Deferred Amounts (the \"Deferral Fee\") payable under the Convertible Debenture; anda Deferral of management fees for Q4 2021 and accrued deferral fees related thereto that is outstanding as of November 14, 2021 (US$10,740) and the management fees to be accrued in Q2 2022 which will be due and payable on August 14, 2022 under the Amended and Restated Cooperation Agreement dated April 23, 2019 (the \"Deferred Management Fees\"), and a deferral fee equal to 2.5% per annum on the outstanding balance of the Deferred Management Fees (the \"Cooperation Agreement Deferral Fee\") payable under the Amended and Restated Cooperation Agreement.If at any time before the Deferred Amounts and Deferral Fee are fully repaid, the Company proposes to appoint, replace or terminate one or more of its chief executive officer, its chief financial officer or any other senior executive(s) in charge of its principal business function or its principal subsidiary, the Company will first consult with,...