NioCorp Calls Upon Additional USD$1.0 Million Under Existing Convertible Security Facility with Lind Partners
February 22, 2017 (Source) — NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3) announces that, further to its existing convertible security facility (the “Convertible Security”) with New York-based Lind Asset Management IV (“Lind”), the Company has provided Lind with its demand to increase the Convertible Security by the principal amount of USD$1.0 million (the “Convertible Security Increase”). NioCorp is entitled to demand the Convertible Security Increase pursuant to the terms of the agreement between Lind and NioCorp governing the Convertible Security dated December 14, 2015 (the “Convertible Security Agreement”).
The Convertible Security Increase funds are required to be delivered by Lind to the Company on or before March 30, 2017, will have a term of two years and bear prepaid interest at a rate of 10% per annum. In connection with the Convertible Security Increase, the Company is obligated to issue Lind common share purchase warrants of the Company (the “Warrants”). The Warrants will have a term of 36 months from issuance, and the number of Warrants to be issued will be equal to USD$1.0 million divided by the volume-weighted average price of the Company’s common shares on the TSX (the “VWAP”) for the five (5) consecutive trading days immediately before the Convertible Security Increase funding is received, multiplied by 0.5. The exercise price of the Warrants issuable in connection with the Convertible Security Increase will be equal to 120% of the Company’s five (5) trading day VWAP per share immediately prior to the date the Convertible Security Increase is received.
For more information about the Convertible Security, please refer to the full Convertible Security Agreement, available under the Company’s profile at www.sedar.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. These securities have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a U.S. person or person in the United States absent such registration or an applicable exemption from such registration requirements. United States and U.S. person are as defined in Regulation S under the U.S. Securities Act.
On Behalf of the Board of Directors,
Executive Chairman, CEO, and Director
NioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy (“HSLA”) steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium also is a critical component of advanced solid oxide fuel cells. Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this document may constitute forward-looking statements, including but not limited to statements related to funding of the Convertible Security Increase and issuance of the Warrants. Such forward-looking statements are based upon NioCorp’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or positions expressed or implied by those forward-looking statements.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this document.
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