Maritime Launch Services Announces Extension of Convertible Debentures
Maritime Launch Services Inc. has extended the maturity date of its convertible debentures from May 7, 2024, to December 7, 2024, with an increased interest rate of 10% payable in cash and 5% in PIK interest. The company will repay $100,000 in principal face value of the debentures and issue 2,250,000 common shares in settlement of an extension fee. The extensions are subject to final agreements and Cboe Exchange approval.
Extension of maturity date provides the company with more time to manage debt obligations effectively.
Issuing common shares in settlement of an extension fee can improve the company's liquidity position.
Increased interest rate from 9% to 10% may lead to higher interest expenses for the company.
Repaying $100,000 in principal face value of the debentures could impact the company's cash reserves.
In exchange for the extension, the Company will be repaying CDN
The interest rate on the debentures will increase from
The debenture extensions are subject to negotiation of final binding agreements and Cboe Exchange approval.
Background on the Debentures
On May 7, 2021 the Company issued unsecured convertible debentures for gross proceeds of
On March 29, 2022, the terms of the debentures were amended in contemplation of the Company’s reverse-takeover transaction of Jaguar Financial Corporation (completed April 27, 2022) and the maturity date was extended to May 7, 2023.
On May 5, 2023 the terms of the debentures were amended a second time. The interest rate on the debentures was increased from
About Maritime Launch Services
Maritime Launch is a Canadian-owned commercial space company based in
For more information about Maritime Launch and Spaceport Nova Scotia, visit www.maritimelaunch.com
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: entering into binding definitive extension agreements with the holders of the debentures, consideration payable in connection with the extension of the debentures, and regulatory approval of the extension by the Cboe Exchange.
Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".
Forward-looking statements in this news release are based on certain assumptions and expected future events, namely: the Company’s ability to continue as a going concern; the Company’s ability to come to mutually agreeable binding terms in definitive agreements with the holders of the debentures in a timely manner or at all; continued approval of the Company’s activities by the relevant governmental and/or regulatory authorities; the Company’s ability to finance its operations until the extension can be secured and profitability of the Company can be achieved and sustained.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the potential inability of the Company to continue as a going concern; risks associated with potential governmental and/or regulatory action with respect to the Company’s operations.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508390682/en/
Maritime Launch Services
Sarah
Vice President of Communications and Corporate Affairs
sarah.mclean@maritimelaunch.com
www.maritimelaunch.com
902.402.6947
Source: Maritime Launch Services Inc.
FAQ
<p>What is the new maturity date for Maritime Launch Services' convertible debentures?</p>
The new maturity date has been extended from May 7, 2024, to December 7, 2024.
<p>How will the interest rate on the debentures change?</p>
The interest rate will increase from 9% to 10% payable in cash, with an additional 5% in PIK interest payable on maturity in shares.
<p>What is the consideration for the extension of the debentures?</p>
The company will repay $100,000 in principal face value of the debentures and issue 2,250,000 common shares in settlement of an extension fee.
