Business
Border Announces Entering Into Commitment Letter, Closing of Bridge Financing & Appointment of New Directors
Border Announces Entering Into Commitment Letter, Closing of Bridge Financing & Appointment of Ne...
About this update from Vital Energy Inc.
[{"type":"text","content":"\nBorder Announces Entering Into Commitment Letter, Closing of Bridge Financing & Appointment of New Directors\n\n\n May 3, 2010 (Filing Services Canada) -- Border Petroleum Inc. (BOP.H - TSX Venture), (\"Border\" or the \"Corporation\") is pleased to announce that it has entered into a commitment letter with arm's length parties (the \"Lenders\") in which the Lenders have agreed, subject to certain conditions precedent, to subscribe for CDN$1.7 million of the previously announced private placement of up to $2,000,000 of secured convertible debentures (the \"Debentures\") which will mature 18 months from the date of issuance and bear interest at a rate of 10% per annum payable at maturity (the \"Debenture Offering\").Pursuant to the commitment letter the Corporation has also closed a CDN$600,000 bridge financing (the \"Bridge Financing\").  The Bridge Financing shall be repaid on demand.  The interest will be calculated at a simple rate of ten (10%) percent per annum compounded semi-annually and payable after, as well as before maturity, default and judgement with interest payable on overdue interest.  Pursuant to the terms of the Bridge Financing, the Corporation may repay the Bridge Financing at any time during the term without repayment penalties.  The Bridge Financing has been secured by a general security agreement over the assets of the Corporation and the Lenders were issued fixed and floating charge debentures and promissory notes for the amount of the Bridge Financing.  The promissory notes, which secure the Bridge Financing, are convertible at any time at the option of the Lenders into Debentures on the same terms as the Debenture Offering.The TSX Venture Exchange Inc. (\"TSX Venture\") has conditionally approved the Debenture Offering, Commitment Letter, Bridge Financing and has approved the graduation of Border from the NEX board of the TSX Venture to Tier 2 issuer subject to completion of the Debenture Offering. The Corporation intends to use $1,500,000 of the proceeds from the Bridge Financing and Debenture Offering to conduct a re-entry program on its Red Earth properties. The balance of the proceeds from the Debenture Offering will be used for general working capital and the payment of expenses related to such offering.Appointment of Directors & OfficerIn conn...