TSX Venture Exchange Symbol FNR
SASKATOON, SK, Aug. 25, 2020 /CNW/ - 49 North Resources Inc.
("49 North" or the "Company") (TSXV: FNR) is amending
the proposal to its debentureholders announced June 1, 2020 to include the outstanding 2015 2.5%
Convertible Subordinated Secured Debentures (the "Subordinated
Debentures"). The Company has also set September 28, 2020 as the date of the joint
extraordinary meeting (the "Debentureholder Meeting") of the
holders of its 2015 2.5% Convertible Senior Secured Debentures –
Series 1 (the "Series 1 Senior Debentures"), the holders of
its 2015 2.5% Convertible Senior Secured Debentures – Series 2 (the
"Series 2 Senior Debentures", and together with the Series 1
Debentures, the "Senior Debentures") and the holders of the
Subordinated Debentures (the Subordinated Debentures together with
the Senior Debentures, the "Debentures") to consider the
proposal.
At the Debentureholder Meeting, the applicable holders of the
Debentures will be asked to consider the following amendments to
the applicable Debentures:
- Extend the maturity date of the Debentures by three (3) years;
and
- Amend the Debentures' conversion price to $0.20 for the remainder of the term of the
Debentures.
Other than the extension to the maturity date and the reduction
of the conversion price, the terms of the Debentures will remain
unchanged.
The amendments are subject to the condition precedent that all
of the Debenture amendments are effected contemporaneously. Upon
the amendments to the Debentures becoming effective, the default of
the Company resulting from its failure to pay the principal amount
of the Series 1 Senior Debentures on June
30, 2020 shall be waived.
On September 28, 2020 the
Debentureholder Meeting will be held at the offices of 49 North,
602 – 224 Fourth Avenue South, Saskatoon,
Saskatchewan, at 10:00 a.m. (Central
Standard Time). In light of ongoing concerns related to the
spread of COVID-19, and in order to mitigate potential risks to
health and safety of the holders of Debentures, employees and other
stakeholders, 49 North is encouraging holders of Debentures and
others not to attend the Debentureholder Meeting in person.
Instead, we encourage you to vote your Debentures prior to the
meeting. Please refer to the "General Proxy and Debentureholder
Meeting Matters" section of the Company's management information
circular dated August 20, 2020 (the
"Circular") for further information.
Anyone who regards their physical attendance at the
Debentureholder Meeting as essential is asked to contact 49 North
at (306) 653-2692 so that appropriate measures can be put in place
to facilitate physical distancing and other precautions to ensure
the health and safety of all attendees. 49 North will follow the
guidelines and orders of the Provincial and Federal Public Health
Authorities in that regard, including those restricting the size of
public gatherings.
Definitive information with respect to the proposed Debenture
amendments is contained in the Circular. The Company has elected to
use notice-and-access provisions of applicable securities law to
deliver the meeting materials for the Debentureholder Meeting,
including the Circular, to debentureholders. The Company has sent a
notice (the "Notice-and-Access Notice") along with a proxy
or voting instruction form to debentureholders. The
Notice-and-Access Notice informs that the Circular (and, certain
other meeting materials) have been posted online and explains how a
debentureholder can access them or obtain from the Company a paper
copy of such meeting materials.
All debentureholder documents are available for download
on the Company homepage at: www.fnr.ca.
About 49 North Resources Inc.
49 North is a Saskatchewan
focused resource investment company. The Company's diversified
portfolio of assets includes investments in shares and other
securities of junior and intermediate mineral and oil and gas
exploration companies.
CAUTION REGARDING FORWARD LOOKING
STATEMENTS
Information in this news release that is not a
statement of historical fact constitutes forward-looking
information. Forward-looking statements contained herein include
statements relating to any amendment to the terms of the
Debentures, any actions or approvals of the TSX Venture Exchange,
the Trustee or the applicable holders of Debentures with respect to
amending the Debentures. Forward-looking statements are
based on assumptions management believes to be reasonable at the
time such statements are made. There can be no assurance that such
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. Factors that may cause
actual results to differ materially from expected results described
in forward-looking statements include, but are not limited to:
the risk that any amendment to the Debentures may not be
approved by the TSX Venture Exchange, the Trustee or the applicable
holders of Debentures, the risk that the Trustee may take
enforcement action under the Senior Indenture and related security
agreements, uncertainties as a result of the global Covid-19
pandemic as well as those risk factors set out in the Company's
Management Discussion and Analysis and other disclosure documents
available under the Company's profile at www.sedar.com.
Forward-looking statements contained herein are made as of the date
of this news release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
Neither 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.
SOURCE 49 North Resources Inc.