MONTRÉAL, Dec. 27, 2017 /CNW/ - Mercury Financing Corp. ("Mercury") announces that it has amended Arianne Phosphate Inc.'s ("Arianne" and collectively with Mercury, the "Parties") current credit facility (the "Transaction"). The amended credit facility now totals $19,472,638 and will expire on January 15, 2019. The credit facility granted to Arianne will 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 17,181,739 warrants with an exercise price of $0.68 per common share. The Parties have also agreed to terminate at closing of the Transaction 3,724,000 non-transferable warrants which were issued to Mercury in October 2015.
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 entitling Mercury to purchase 7,657,000 common shares of Arianne. Assuming the exercise of all warrants held by Mercury prior to the closing of the Transaction, it would have owned 10,871,000 common shares, representing, on a partially diluted basis, 10,05% of Arianne's common shares that would then be issued and outstanding. Immediately following the closing of the Transaction, assuming the exercise of all warrants held by Mercury following the closing of the Transaction, it would own 24,328,739 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.
For further information: Mr. Paul Smith, Mercury Financing Corp., Suite 4 - 210 Governors Square, P.O. Box 32311, Grand Cayman, KY1-1209, Cayman Islands, Tel.: +1 345 945 7676