Business
Ucore Closes Fully-Subscribed Private Placement of Convertible Debentures
Halifax, Nova Scotia--(Newsfile Corp. - May 29, 2020) - Ucore Rare Metals Inc. (TSXV: UCU)...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Ucore Closes Fully-Subscribed Private Placement of Convertible DebenturesHalifax, Nova Scotia--(Newsfile Corp. - May 29, 2020) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (\"Ucore\" or the \"Company\") is pleased to announce that further to its previous announcements, the Company has closed the second and final tranche (the \"Second Tranche\") of its non-brokered private placement (the \"Financing\") of unsecured convertible debentures (\"Convertible Debentures\"). Pursuant to the Second Tranche, Ucore issued 1,520 Convertible Debentures at a price of $1,000 per debenture for aggregate gross proceeds of $1.52 million which, when combined with the first tranche, resulted in a total of $2.8 million being raised through the issuance of 2,800 Convertible Debentures. The Convertible Debentures bear interest at a rate of 7.5%, payable semi-annually on the last day of May and November of each year, commencing on November 30, 2020, and have a three-year term (the \"Term\"), with the principal amount being due to be repaid in full by the Company on May 31, 2023 (the \"Maturity Date\"). In addition to annual interest at a rate of 7.5%, the Company paid to each initial holder of Convertible Debentures a one-time commitment fee comprised of 500 commitment warrants (\"Commitment Warrants\") per Convertible Debenture. Each Commitment Warrant entitles its holder to acquire one common share of the Company (a \"Common Share\") at an exercise price of $0.18 per Common Share for a period of 24 months.At any time during the Term, a holder of Convertible Debentures may elect to convert the outstanding net principal amount, or any portion thereof, into units (\"Units\") at a conversion price of $0.12 per Unit (the \"Conversion Price\"). Each Unit shall consist of one Common Share and one-half of a warrant (\"Warrant\"), with each whole Warrant entitling the holder to acquire a Common Share at an exercise price of $0.18 for a period ending on the Maturity Date. The outstanding principal amount of each Convertible Debenture will automatically be converted into Units at the Conversion Price ($0.12) if the Common Shares trade at a closing price of $0.22 or more on the TSX Venture Exchange (the \"TSXV\") for 20 consecutive trading days. During the third year of the Term, the Company shall have the option to extend the Term by up to one additional ...