Sentient IV amends maturity date of convertible note issued by Samco Gold Limited

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES

MONTREAL, Jan. 23, 2017 /CNW Telbec/ - Sentient Executive GP IV, Limited ("Sentient IV") announces that on January 23, 2017, the TSX Venture Exchange formally approved the amendment to the maturity date of a convertible promissory note  (the "Note") in a principal aggregate amount of US$500,000 issued by Samco Gold Limited ("Samco") over which Sentient IV has control. The Note was acquired on June 30, 2015 pursuant to a previously-announced private placement by Samco.

The Note (as amended) matures on June 30, 2017 and continues to bear interest at a rate of 12% per annum. The principal amount of the Note is convertible, at the option of Sentient IV, into fully paid and non-assessable common shares of Samco ("Common Shares") at a conversion price of Cdn.$0.50 per share.  Interest on the Note can be paid, at the option of Sentient IV, in Common Shares valued at the market price (as that term is defined in the Note) of Common Shares at the time of payment.

Assuming the conversion in full of the principal amount of the Note only, Sentient IV would acquire ownership and control over a maximum of 1,235,900 Common Shares (using the Bank of Canada noon exchange rate on June 26, 2015, as per the terms of the Note), representing approximately 1.9% of the outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of the principal amount of the Note only. As the number of Common Shares issuable to Sentient IV as payment of interest on the Note is contingent, in part, upon future share prices and exchange rates, the number of Common Shares that Sentient IV could acquire, should it trigger the payment of interest under the Note in Common Shares, cannot be determined as at this time.

Sentient IV has control or direction over 12,949,200 Common Shares, representing approximately 19.9% of the issued and outstanding Common Shares, and the Note.

Assuming the conversion in full of the principal amount of the Note only, Sentient IV would acquire ownership and control over a maximum of 14,185,100 Common Shares (including the 12,949,200 Common Shares over which Sentient IV currently has control and using the Bank of Canada noon exchange rate on June 26, 2015, as per the terms of the Note). These combined holdings would represent approximately 21.4% of the outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of the principal amount of the Note only. As the number of Common Shares issuable to Sentient IV as payment of interest on the Note is contingent, in part, upon future share prices and exchange rates, the number of Common Shares that Sentient IV could acquire, should it trigger the payment of interest under the Note in Common Shares, cannot be determined as at this time.

Sentient IV acquired the Note for investment purposes only and not with a view to materially affecting control of Samco. Depending upon market conditions and other factors, Sentient IV may, from time to time, acquire or dispose of additional securities of Samco, in the open market, by private agreement or otherwise, or acquire interests in or enter into related financial instruments involving a security of Samco.

The head office of Samco is 3 Hanover Square, 4th Floor, London, England, W1S 1HD.

 

SOURCE Sentient Executive GP IV, Limited

For further information: For further information or to obtain a copy of the Early Warning Report filed by Sentient IV, please contact Sue Bjuro at (345) 946-0933.


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