Arianne Phosphate reduces Mercury facility, extends maturity five years

Chicago, April 1 – Arianne Phosphate’s senior lender Mercury Financing Corp. has agreed to exercise its 26.78 million warrants, which will reduce the amount owed under the credit facility to C$24.9 million, according to a press release.

Additionally, the maturity date for the loan has been pushed back five years from June 15, 2021, and the interest rate has been adjusted to 8%. Prospect News reported the rate at 15% as of the last extension on the facility.

With the amended facility Mercury has received 32 million non-transferable share purchase warrants exercisable at a price of C$0.33 per share that are good for five years.

Mercury cannot hold more than 19.9% of the company through the exercise of the warrants.

Additionally, Arianne has closed on its agreements with subordinated debtholders in the amount of C$5,970,155, where the debtholders agreed to convert their debt into 21,709,655 shares of the company and have 11,028,584 existing warrants originally tied to the debt canceled.

The securities issued in conjunction with both agreements are subject to a hold period ending Aug. 1.

The development-stage phosphate mining company is based in Saguenay, Quebec.

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