49 North does not get approval to restructure convertibles

By Taylor Fox

New York, March 26 – 49 North Resources Inc. announced that at the joint extraordinary meeting held on March 22 to restructure its 2015 2.5% convertible senior secured debentures, series 1; 2015 2.5% convertible senior secured debentures, series 2; and 2015 2.5% convertible subordinated secured debentures, the proposal was not approved, according to a news release.

While 77% of the votes cast by the series 1 debentureholders approved the restructuring, similar votes before holders of both the series 2 debentures and the unsecured subordinated debentures did not pass.

As previously reported, the company sought to extend the maturity date by three years.

Additionally, the conversion price would have been reduced to C$0.15 per share from C$0.20 per share for the remaining life of the notes.

The company wished to have the right to redeem the notes in whole or in part on not more than 60 days and not less than 30 days prior notice at par plus interest, subject to the right of the holders to convert prior to such prepayment.

The company also wanted to add a covenant that 50% of the net proceeds of any financing it closes during the term of the debentures will be used to redeem the principal of and interest on the debentures, on a pro rata basis.

The proposed amendments were a result of discussions with debentureholders.

At least 66 2/3% of the holders of the notes were needed to approve the amendments.

The meeting was held at the offices of 49 North at 224 Fourth Avenue South, Saskatoon, Sask., on March 22. However, noteholders could vote, and were encouraged to do so, before the meeting.

Physical distancing measures were put in place for noteholders who regarded their presence as essential at the meeting.

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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