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Maritime Launch Services Extends Debenture Maturity Date
HALIFAX, Nova Scotia—Maritime Launch Services Inc. has announced a significant development regarding its outstanding convertible debentures. The company has reached binding agreements with debenture holders to push back the maturity date from May 7, 2024, to December 7, 2024. This extension is contingent on specific conditions, anticipated to be fulfilled around August 14, 2024, which include the issuance of 2,250,000 common shares as part of an extension fee.
The terms of this agreement reflect those initially detailed in a press release dated May 8, 2024, and are also included in the company’s Q1 2024 Financial Statements available on SEDAR+. This adjustment follows the approval of the agreement by the Company’s Board of Directors and by a written consent from over 50% of the eligible Common Shareholders, bypassing the necessity for a formal shareholder meeting.
As of May 7, 2024, the interest rate on the debentures will see an increase from 9% to 10%, with this amount payable in cash upon maturity. In addition, an extra 5% in Payment-In-Kind (PIK) interest will be owed at maturity in shares, calculated based on a conversion rate of CAD $0.12 per share, in line with the terms of debentures issued in December 2023.
Background on the Debentures
The convertible debentures were first issued on May 7, 2021, generating gross proceeds of CAD $7,500,000, with an initial interest rate of 4% and a maturity date set for May 7, 2022. On March 29, 2022, the terms were amended to support the company’s reverse takeover of Jaguar Financial Corporation, extending the maturity date to May 7, 2023. Subsequently, on May 5, 2023, the terms saw another amendment, raising the interest rate to 9% and shifting the maturity date again to May 7, 2024.
About Maritime Launch Services
Maritime Launch Services is a Canadian-based commercial space entity headquartered in Nova Scotia, focusing on the development of Spaceport Nova Scotia. This site will serve as a launch facility, providing satellite delivery services to a growing clientele within the commercial space industry. Spaceport Nova Scotia aims to cater to diverse launch inclinations and facilitate the deployment of satellites into low-earth orbit, marking it as Canada’s inaugural commercial orbital launch complex.
For more details regarding Maritime Launch and Spaceport Nova Scotia, visit www.maritimelaunch.com.
Forward-Looking Statements
This communication includes “forward-looking statements” as defined by applicable securities laws. These statements encompass predictions that go beyond historical information, primarily concerning the closing of agreements with debenture holders and terms related to the debentures’ extension.
Such statements can often be identified by terminology such as “plans”, “expects”, “is anticipated”, “estimates”, or similar expressions. They are based on certain assumptions about the company’s future operations, including obtaining necessary approvals from governmental or regulatory bodies and the company’s ability to maintain operations until profitability is realized.
Readers should be aware that forward-looking statements are influenced by known and unknown risks, uncertainties, and other factors. Actual outcomes may considerably differ from those forecasted, and investors are advised to avoid placing undue reliance on these statements.
Maritime Launch Services explicitly qualifies these forward-looking statements with a cautionary note, acknowledging that conditions may change and actual results may vary significantly from anticipated outcomes. The company has no obligation to update any forward-looking statements unless required by law.
View the original press release on Business Wire: businesswire.com
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