Re: RESVERLOGIX ANNOUNCES. $15.1 MILLION OF PRIVATE PLACEMENTS
in response to
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posted on
Apr 01, 2019 09:25AM
Yes it appears they still owed $15 million as of Jan 31 2019,... so now they should own about half that.
Third Eye Capital Loan On May 4, 2018 the Company closed a US$30.0 million senior secured loan (the “Third Eye Loan”) with Third Eye Capital (“Third Eye”). The loan bears interest at 10% per annum, calculated and payable monthly in arrears, and will mature on May 4, 2019. Pursuant to the loan agreement with Third Eye, the borrower covenants the Company must comply with include: maintaining a cash balance greater than $5 million, a current ratio greater than 1:1 (excluding warrant liability, unearned licensing rights fee and debt from current liabilities), and a market capitalization greater than CAD$150 million (as of the last trading day of each month), as well as other customary covenants. The Third Eye Loan is subject to mandatory prepayment provisions requiring at least 50% of the net cash proceeds of asset dispositions, licensing, distribution or partnership agreements, royalties, debt or equity issuances, grants and tax refunds to be applied to repayment of the Third Eye Loan. During the nine months ended.
Debt (continued) January 31, 2019, the Company repaid $15.5 million of the Third Eye Loan, corresponding to 50% of the net cash proceeds from the private placements and warrant exercises in the period. The Company is in compliance with the Third Eye Loan debt covenants as at January 31, 2019. Interest for approximately the first four months of the term ($1.0 million of non-refundable interest) was pre-paid in advance at closing pursuant to the terms of the Third Eye Loan. The Company paid to Third Eye a one-time commitment fee of $0.9 million and is obligated to pay a $0.6 million exit fee upon full and final repayment or termination of the Third Eye Loan. As well, the Company issued 3.5 million warrants to Third Eye in connection with the Third Eye Loan. Each warrant is exercisable at a price of CAD$1.40 per underlying common share for a period of three years from the closing of the Third Eye Loan, as described in Note 7(e). 6. Royalty preferred