Business
Randy Johnson Extends Maturity Date of Loan to 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":"Randy Johnson Extends Maturity Date of Loan to 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. - December 2, 2021) - 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 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 March 30, 2019, Ucore originally entered into a secured long-term debt agreement (the \"Loan\") with Orca in the principal amount of USD$2,725,000. Interest was payable monthly and the principal amount was to be repaid in full on March 31, 2021. The Loan had an interest rate of 12.5% annually for the first 9 months commencing July 1, 2019 and then an interest rate of 15% annually for the 12 months commencing April 1, 2020.On November 27, 2019, Ucore and Orca renegotiated the Loan. This included revised terms that saw Ucore pay off CAD$2,000,000 (USD$1,890,696) in principal and issue 500,000 common share purchase warrants (\"Warrants\") to Orca, extend the maturity date of the Loan to November 30, 2021, and reduce the interest rate to 9%.On November 30, 2021, Ucore and Orca renegotiated the Loan again and the maturity date of the Loan was extended by 24 months to November 30, 2023. The earlier-issued 500,000 Warrants expired on November 30, 2021 and Ucore agreed to issue 1,000,000 new Warrants to Orca with an exercise price of CAD$1.20 per Share and an expiry date of November 30, 2023. The issuance of these new Warrants is subject to the approval of the TSX Venture Exchange (the \"TSXV\") in accordance with its Policy 5.1.Immediately prior to yesterday's amending of the expiry date of the Loan and the agreement to issue one million new Warrants, Mr. Johnson directly or indirectly held beneficial ownership of, and control and direction over, a total of 5,092,406 Shares, 773,333 Warrants, 590,000 stock options of the Issuer (\"Options\"), and the Loan (which is not convertible into Shares). These holdin...