Still trying to understand today's announcement, I'm pretty slow at this kind of thing lol. Definitely seems better than the last Yorkville agreement though. I hope somebody more knowledgeable than me chimes in.
This language is interesting
holders of the Notes will be entitled to convert the principal amount of, accrued and unpaid interest, if any, and any Payment Premium that has become due and payable on each Note, from time to time over their term, into a number of Common Shares equal to the quotient of the amount being converted divided by a fixed conversion price of US$2.75 per Common Share (the "Conversion Price") up to a maximum of 3,141,817 Common Shares
So if on June 1st Niocorp does not have 1.4 million to pay, the entities the entities then convert that amount into shares at $2.75 per?
But it seems like there are conditions that need to be met for that to be an option?
As mentioned above, the Company is required to make payments on each Payment Date until the entire outstanding principal is repaid, but will not have an obligation to make a payment on a Payment Date if the Equity Conditions are satisfied. The "Equity Conditions" means (i) on each of the five consecutive trading days prior a Payment Date (the "Measuring Period") the Underlying Shares Registration Statement (as defined below) is effective and available for the resale by the Purchasers of all Underlying Shares, (ii) the Company has no knowledge of any fact that would cause the Underlying Shares Registration Statement not to be effective and available for the resale of the Underlying Shares, (iii) on each day during the Measuring Period, the Common Shares are designated for quotation on Nasdaq, or on such other market or exchange on which the Common Shares are then listed or traded to the extent such other market or exchange is the principal U.S. trading market for the Common Shares (the "Principal U.S. Market"), and have not been suspended from trading nor have delisting or suspension of trading been threatened or pending, (iv) during the Measuring Period, an event of default has not occurred, (v) on each trading day during the Measuring Period, the daily U.S. dollar volume-weighted average price ("VWAP") for a Common Share on the Principal U.S. Market as reported by Bloomberg Financial Markets is greater than 120% of the Conversion Price, (vi) on each trading day during the Measuring Period the average daily volume traded exceeded US$500,000, and (vii) there is no limitation on conversion under the terms of Notes
What if the share price is $2.50 and they aren't able to make a payment on June 1st?
AI
