MONTRÉAL, July 3, 2020 /CNW Telbec/ - Mercury Financing Corp. ("Mercury") announces that it has extended Arianne Phosphate Inc.'s ("Arianne" and collectively with Mercury, the "Parties") current credit facilities (the "Transaction"). The extended credit facilities now total $28,942,259 and will expire on June 15, 2021. The credit facilities granted to Arianne continues to bear interest at an annual rate equal to 15% with all interest capitalized through the end of the facility. Pursuant to the Transaction, Arianne issued to Mercury 26,780,000 warrants (the "New Warrants") with an exercise price of $0.2466 per common share until June 15, 2021.
Immediately prior to the closing of the Transaction, Mercury held, directly or indirectly, (i) 3,214,000 common shares of Arianne and (ii) common share purchase warrants (the "Existing Warrants") entitling Mercury to purchase 22,417,458 common shares of Arianne. Assuming the exercise of all warrants held by Mercury prior to the closing of the Transaction, it would have owned 25,631,458 common shares, representing, on a partially diluted basis, 17.60% of Arianne's common shares that would then be issued and outstanding. As a result of the Transaction, all of the Existing Warrants were surrendered to Arianne and cancelled. Immediately following the closing of the Transaction, assuming the exercise of all New Warrants held by Mercury following the closing of the Transaction, it would own 29,994,000 common shares, representing, on a partially diluted basis, 19.99% of Arianne's common shares that would then be issued and outstanding.
The Transaction is a private transaction that did not take place on any market or exchange.
In accordance with applicable securities laws, Mercury may, from time to time and at any time, acquire additional common shares of Arianne and/or other equity, debt or other securities or instruments (collectively, "Securities") of Arianne in the open market or otherwise, and Mercury reserves the right to dispose of any or all of its Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of Arianne and other relevant factors.
A copy of the early warning report filed by Mercury in connection with the Transaction is available on Arianne's SEDAR profile. This news release is being issued under the early warning provisions of Canadian securities legislation.
SOURCE Mercury Financing Corp.
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