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Orca Holdings, LLC Granted Warrants as Part of New Credit Facility for Ucore Rare Metals Inc.
This press release is issued pursuant to Multilateral Instrument 62-104 - Take-Over Bids and ...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Orca Holdings, LLC Granted Warrants as Part of New Credit Facility for Ucore Rare Metals Inc.This press release is issued pursuant to Multilateral Instrument 62-104 - Take-Over Bids and Issuer Bids and National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. Ketchikan, Alaska--(Newsfile Corp. - August 18, 2022) -  This release is being made by Randy Johnson to report information concerning holdings of Mr. Johnson and Orca Holdings, LLC (collectively, the \"Acquiror\") in Ucore Rare Metals Inc. (the \"Issuer\" or \"Ucore\"). Orca Holdings, LLC (\"Orca\") is wholly owned by Mr. Johnson, serving as a holding company for Mr. Johnson's securities holdings. Mr. Johnson has been a director of Ucore since October 6, 2020.On August 16, 2022, the TSX Venture Exchange approved and Ucore issued 2 million common share purchase warrants (\"Warrants\") to Orca, with each Warrant entitling Orca to acquire one common share of the Company at an exercise price of CAD$0.75 during a term ending on July 20, 2023. The issuance of these Warrants was in consideration for Orca providing Ucore with a secured line of credit facility (the \"Line of Credit\") in the amount of up to USD$2 million, as detailed in the Ucore's news release dated July 21, 2022. Drawdowns on the Line of Credit will be available in multiples of USD$100,000 and will carry interest at a rate of 9 percent per annum. All amounts owing under the Line of Credit will be repayable by maturity, which is six months from the execution date of the Line of Credit (Jan. 20, 2023), unless such repayment is accelerated due to the Company's completion of an equity financing on terms acceptable to the Company and the investor(s). The Line of Credit is secured by a general security agreement over the assets of the Company. Orca has been a secured creditor of the Company since March 30, 2019 when Orca provided a term loan to Ucore. That term loan, as amended and currently bearing interest at 9%, had principal and accrued interest owing of CAD$1,100,071 as at March 31, 2022 (the end of Q2 2022) and is due for repayment on November 30, 2023.Immediately prior to the issuance of the Warrants, the Acquiror directly or indirectly held beneficial ownership of, and control and direction over, a total of 5,092,406 common shares, 1,000,000 warrants, and ...