49 North adjourns meeting of holders of convertibles to Nov. 27

By Rebecca Melvin

New York, Sept. 30 – 49 North Resources Inc. adjourned a joint extraordinary meeting of the holders of its 2.5% series 1 convertible senior secured debentures and 2.5% series 2 convertible subordinated secured debentures until Nov. 27, according to a company release on Wednesday.

The Sept. 28 meeting was adjourned due to a lack of quorum of the subordinated debentures. A quorum of at least 25% of the principal amount of the debentures is required.

The meeting was being held in respect of the company’s proposal to extend the maturity date of the convertibles by three years to June 1, 2023 and amend the conversion price for the remainder of the term.

As of Sept. 28, there were proxies representing 8.79% of the outstanding subordinated debentures, with 82.82% of those proxies voting in favor of the amendments; and proxies representing 39.51% of the senior debentures, with 50.87% voting in favor of the amendments.

Based on the proxies voted, the resolution to amend the terms of the senior debentures will not be passed, and the company will remain in default under the debentures since the company failed to pay the principal amount of the senior debentures on June 30.

At the Nov. 27 meeting, the trust indenture for the subordinated debentures provides that the holders of that paper present shall form a quorum and may transact the business for which the meeting was originally convened, and an extraordinary resolution proposed at the adjourned meeting and passed by 66⅔% of the principal amount of subordinated debentures shall be a valid and binding extraordinary resolution, even if holders of at least 25% of the principal amount of the subordinated debentures outstanding are not present.

49 North is a Saskatoon, Sask.-based oil and gas exploration, development and production company with a resource investment portfolio and strategic operations in financial, managerial and geological advisory services and merchant banking.

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