| Home : May 2011 : May 17, 2011 News : Orvana Obtains US$15 Million Bridge Loan Commitment and Amends Shareholder's Pre-Emptive Rights to Facilitate Equity Offerings |
Orvana Obtains US$15 Million Bridge Loan Commitment and Amends Shareholder's Pre-Emptive Rights to Facilitate Equity Offerings |
May 17, 2011
TORONTO, ONTARIO--(Marketwire - May 16, 2011) - Orvana Minerals Corp. (TSX:ORV) announced today that it has entered into an agreement with Fabulosa Mines Limited ("Fabulosa"), which owns 51.6% of Orvana's issued and outstanding common shares, under which Fabulosa has committed to provide Orvana with a six-month, secured convertible US$15,000,000 bridge loan bearing interest at a rate of 8% per annum. Fabulosa has also agreed to amend its pre- emptive rights to acquire Orvana common shares. The amendments will facilitate Orvana's ability to undertake conventional forms of public equity financings. In addition, Orvana and Fabulosa have resolved a difference of opinion between them regarding the application of Fabulosa's pre-emptive right to the issuance of common shares upon the exercise of stock options. As consideration for the amendments and the provision of bridge loan financing, Orvana will issue to Fabulosa 1,969,999 common shares (the "Consideration Shares") and five-year warrants to purchase up to 2,725,000 common shares (the "Warrant Shares"). Following the issuance of the Consideration Shares, Fabulosa will own 52.4% of Orvana's issued and outstanding common shares. The warrants will be exercisable only upon the issuance of, and in equal numbers to, common shares issuable upon the exercise of any of Orvana's currently outstanding stock options. 1,300,000 warrants will be issued three months after the issuance of the Consideration Shares and 1,425,000 warrants will be issued nine months after the issuance of the Consideration Shares. All of the warrants will have an exercise price equal to the volume-weighted average price of the common shares for the five trading days preceding the date such warrants are issued. The transactions are subject to obtaining the approval by the Toronto Stock Exchange (the "TSX") of the issuance of the Consideration Shares and the Warrant Shares.
http://www.marketwire.com/mw/release.do?id=1515166&sourceType=3
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