Business
Deferral of Payment Obligations under Convertible Debenture; Major and Connected Transaction
VANCOUVER, BC / ACCESSWIRE / March 26, 2023 / SouthGobi Resources Ltd. (TSX:SGQ)(HK:1878) (" Sou...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"Deferral of Payment Obligations under Convertible Debenture; Major and Connected TransactionVANCOUVER, BC / ACCESSWIRE / March 26, 2023 / SouthGobi Resources Ltd. (TSX:SGQ)(HK:1878) (\"SouthGobi\" or the \"Company\") announces that, on March 24, 2023, the Company entered into a new deferral agreement (the \"March 2023 Deferral Agreement\") with JD Zhixing Fund L.P. (\"JDZF\"), pursuant to which JDZF agreed to grant the Company (i) a deferral of the cash interest payment of approximately US$7.9 million (the \"May 2023 Cash Interest\") which will be due and payable on May 19, 2023 under the Company's US$250 million convertible debenture (the \"Convertible Debenture\"); (ii) a deferral of the cash interest, management fees, and related deferral fees of approximately US$8.7 million (the \"May 2022 Deferred Amounts\") which will be due and payable to JDZF on or before August 31, 2023 under the deferral agreement dated May 13, 2022; (iii) the cash and PIK interest, and related deferral fees of approximately US$13.5 million (the \"July 2021 Deferred Amounts\") which will be due and payable to JDZF on or before August 31, 2023 under the deferral agreement dated July 30, 2021; and (iv) the cash and PIK interest, management fees, and related deferral fees of approximately US$110.4 million (the \"November 2020 Deferred Amounts\", and together with the May 2023 Cash Interest, the May 2022 Deferred Amounts and the July 2021 Deferred Amounts, the \"March 2023 Deferred Amounts\") which will be due and payable to JDZF on or before August 31, 2023 under the deferral agreement dated November 19, 2020. JDZF is the registered holder of the Company's US$250 million Convertible Debenture issued on November 19, 2009 and the Company's largest shareholder.Pursuant to Section 501(c) of the Toronto Stock Exchange (\"TSX\") Company Manual and Rule 14A.36 of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the \"HKEX Listing Rules\"), the Company will be seeking approval of the March 2023 Deferral Agreement from disinterested shareholders at a meeting of shareholders (the \"Meeting\") to be held at a future date to be set by the board of directors of the Company (the \"Board\").The March 2023 Deferral AgreementThe principal terms of the March 2023 Deferral Agreement are as follows:Effectiveness of the March 2023 Defe...