Here is the guts of the 8k. This is awesome - repayment at a minimum of 4 years down stream, up to 15Mil as needed - we even get another advisor on the BOD. This is a Great in good times and an outstanding deal in todays climate. Way to go management!
Makamai
Item 1.01 Entry into a Material Definitive Agreement
On March 16, 2009, Magnum D’Or Resources, Inc. (“Magnum”) entered into an agreement with the SIMCO GROUP of Quebec, Canada to provide Magnum with working capital to advance its business plan and complete the expansion of its Magog production plant facility in Canada. This agreement provides for a disbursement of up to $15,000,000 cash in exchange for a convertible promissory note that carries the following provisions:
1. A total repayment in the amount of $24,750,000 on the maturity date of March 16, 2017; and
2. The option for the note holder to convert the liability to common stock on a date commencing no sooner than four (4) years from the date of issuance, but before the note maturity date; and
3. A conversion privilege equal to at the average market price calculated over a twenty (20) trading day period preceding the date of the request for redemption; and
4. The option to extend the note at an interest rate of 5% per annum by the note holder.
The agreement also calls for the appointment of a SIMCO GROUP representative as a non-voting advisory member of the Board of Directors to monitor disbursements of the note proceeds and render general business advice to Magnum.
