NioCorp Calls Upon Additional USD$1.0 Million Under Existing Convertible Security Facility with Lind Partners
February 22 2017 - 8:06AM
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,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
About NioCorp
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.
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com
NioCorp Developments (TSX:NB)
Historical Stock Chart
From Aug 2024 to Sep 2024
NioCorp Developments (TSX:NB)
Historical Stock Chart
From Sep 2023 to Sep 2024