Hudson Resources Announces Addition to Working Capital and Extension of Loan Agreement
TSX VENTURE: HUD
VANCOUVER, British Columbia, March 29, 2019 (GLOBE NEWSWIRE) -- HUDSON RESOURCES INC. (“Hudson” – TSX Venture Exchange “HUD”) is pleased to announce that an agreement has been reached with Hudson’s lender, Cordiant Capital Inc. (“Cordiant”) to provide additional working capital and to extend the maturity and first principal payment of its loan by one year. The additional working capital is required to cover costs associated with delays to full production and equipment performance.
Key parameters of the amended agreement include the following:
- Cordiant is arranging an increase of up to US$8M to the current loan facility of US$22.5M to be used for working capital purposes, of which Cordiant will provide a minimum of US$5M. The additional funds are generally on the same terms as the current facility.
- The maturity of the loan facility will be extended from July 15th, 2024 to July 15th, 2025, with the first principal repayment being deferred by one year accordingly from January 15th, 2020 to January 15th, 2021.
- In addition to customary transaction fees, Hudson has agreed to grant Cordiant a warrant package consisting of 2.85 million warrants at a price of $0.45 for a period of five years, subject to the policies and approval of the TSX Venture Exchange.
- Cordiant will elect a member to join the Hudson board as an Observer. The Observer position does not have any voting rights.
As discussed in Hudson’s most recent MD&A dated February 28, 2019, the Company is currently ramping up production of GreenSpar at the processing plant in Greenland and anticipates the first shipment of product will be departing for Charleston, SC in the second quarter of 2019. The Company is also actively involved in discussions with several potential customers regarding new off-take agreements.
ON BEHALF OF THE BOARD OF DIRECTORS
“Jim K Cambon”
President and Director
For further information:
Ph: 604-628-5002 or 604-505-2157
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding the use of proceeds from the private placement, and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.