Otterburn Resources Corp and K92 Holdings International Ltd have raised an aggregate Can$1,479,930 of interim financing pending closing of their previously announced RTO.
Otterburn has and will advance the net proceeds from the sale of the subscription receipts to K92 as loans for financing of operations in Papua New Guinea pending closing of the RTO and a concurrent financing.
Otterburn raised the funds through the sale of subscription receipts, raising Can$1,273,913 in a first tranche closing, $75,000 in a second tranche closing, and $131,017 in a third tranche closing.
Otterburn and K92 also announce that all of the subscription receipts previously issued under the financing have been repriced to Can$0.35 per receipt, and that each subscription receipt will now entitle the holder to automatically receive, without payment of additional consideration and without further action on the part of the holder, and subject to adjustment:
- One unit of Otterburn following closing of the RTO; each unit consisting of one common share of Otterburn, and one common share purchase warrant exercisable at Can$0.50 for a period of 18 months from the date of issue; or
- Should the RTO fail to close by December 31, 2015 (or such later date as Otterburn and subscription receipt holders may agree), a pro-rata share of: (A) the loans made by Otterburn to K92, and (B) the balance of the proceeds (if any) from the sale of the subscription receipts which has not then been loaned by Otterburn to K92.
Otterburn and K92 will continue to raise additional proceeds under the financing, at Can$0.35 per receipt, pending closing of the RTO.