Mission Ready Services Inc. (“Mission Ready” or the “Company”) (TSX VENTURE: MRS) announces that further to its News Release of April 5, 2017 that it has reached an amended agreement with First Republic Capital Corporation (the “Agent“) to act as agent in relation to a brokered private placement whereby the Company proposes to raise on a up to $1,500,000 through the issuance of secured convertible debentures of the Company (the “Offering“). Closing of the Offering is expected to occur on or before May 1, 2017 and is expected to close in more than one tranche.
Under the terms of the amended agreement each Debenture is convertible at the option of the holder, in whole or in part, into units consisting of one common share and one share purchase warrant at a price of $0.10 (the “Conversion Price“) per unit at any time before 5:00 p.m. (Toronto time) on the date that is twelve months following the closing of the Offering, or each tranche thereof. Each Debenture matures twelve months from the date of issuance (the “Maturity Date”) and contains a clause entitling the holder at its option to extend the Maturity Date of the debenture for a further 12 months on terms acceptable to the TSX-V at the time of the extension. The Debentures bear interest at a rate of 15% per annum, accrued and payable in on the Maturity Date or where the whole or any part of the Debenture is converted, on the date of conversion in proportion to amount of the Debenture converted on such date. The Debenture is subject to a default clause whereby if the Company issues shares for at a price per share less than the Conversion Price during the term of the Debenture this will be treated as a default and all amounts due under the Debenture will become payable where the Company does not cure such default within a 30 day period after receiving notice of such default from the holder.
Each share purchase warrant (each, a “Warrant“) that is issued as a result of any conversion is exercisable by the holder to acquire one common share of the Corporation for a period of thirty-six (36) months from the date of conversion at an exercise price of $0.15 per warrant share.
Were the Debentures to be fully converted into common shares of the Company this would result in the issuance of up to 15,000,000 common shares and 15,000,000 Warrants each exercisable into one common share.
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