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Scorpio Gold Completes US$7 Million Convertible Debenture Financing

Maxis Law represented Scorpio Gold with a team that included Morgan Hay, Abdullah Abunafeesa, and Sean Hawkins.

On April 29, 2019, Scorpio Gold Corporation (“Scorpio Gold”) announced the closing of its non-brokered private placement financing of secured subordinated convertible debentures (the “Debentures”) for gross proceeds of US$7 million issued pursuant to a debenture indenture entered into between Scorpio Gold and the Computershare Trust Company of Canada.

Each Debenture has an issue price of US$1,000, a term of three years from the date of issuance and will bear interest at a rate of 10% per annum, payable semi-annually. The Debentures are secured by a security interest subordinate to all existing and future senior indebtedness of Scorpio Gold, as approved by Scorpio’s board of directors, subject to certain board composition requirements. Each Debenture is convertible into common shares of Scorpio Gold (the “Shares”) at a conversion price of US$0.08 per Share (the “Conversion Price”) at the option of the holder at any time prior to maturity or at the option of Scorpio Gold on maturity. In connection with the convertible debenture financing, Scorpio Gold also completed a 2:1 consolidation of its Shares.

Scorpio Gold is a Canadian-based gold producer with a 100% interest in the Mineral Ridge gold project located in Esmeralda County, Nevada and a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada.

Further details regarding Scorpio Gold and the financing can be found on Scorpio Gold’s website. Scorpio Gold trades under the symbol “SGN” on the TSX Venture Exchange.