NioCorp Developments Ltd. (TSE:NB) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03
Lind Second Tranche Increase
As previously disclosed, on December 14, 2015, NioCorp Developments Ltd. (the “Company”) entered into a definitive convertible security funding agreement (the “Lind Agreement”) with an entity managed by The Lind Partners, a New York-based asset management firm (collectively with The Lind Partners, “Lind”), and issued to Lind an initial convertible security (the “Initial Convertible Security”).
to notice provided by Lind to the Company of its election to advance, in total, an additional $2.5 million in funding under the Initial Convertible Security and the Lind Agreement (the “Second Tranche Increase”), on February 5, 2018 and February 7, 2018, Lind funded $0.5 million and $0.5 million, respectively, under the Second Tranche Increase. With the payment of the full $2.5 million in funding by Lind to the Company, the face amount of the Initial Convertible Security was increased to $3.0 million ($2.5 million in additional funding and $0.5 million in implied interest amount).
| Item 3.02 | Unregistered Sales of Equity Securities. |
The disclosure regarding the Lind Agreement and the Second Tranche Increase contained in Item 2.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 3.02.
On February 5, 2018, in connection with the funding of $0.5 million of the $2.5 million Second Tranche Increase, the Company issued 529,344 common share purchase warrants of the Company (the “Warrants”) to Lind, with each Warrant entitling the holder to acquire one common share at a price of C$0.70 per share until February 5, 2021. The Warrants were issued to the exemption from the registration requirements of the Securities Act of 1933 provided by Section 4(a)(2) thereof based upon representations and warranties of Lind in connection with the Second Tranche Increase.
On February 7, 2018, in connection with the funding of $0.5 million of the $2.5 million Second Tranche Increase, the Company issued 541,435 common share purchase warrants of the Company (the “Warrants”) to Lind, with each Warrant entitling the holder to acquire one common share at a price of C$0.69 per share until February 7, 2021. The Warrants were issued to the exemption from the registration requirements of the Securities Act of 1933 provided by Section 4(a)(2) thereof based upon representations and warranties of Lind in connection with the Second Tranche Increase.
About NioCorp Developments Ltd. (TSE:NB)
NioCorp Developments Ltd. is an exploration-stage company. The Company is a mineral exploration/development company engaged in the acquisition, exploration and development of mineral properties. The Company operates through a segment consisting of exploration and development of mineral deposits in North America, specifically, the Elk Creek Niobium/Scandium/Titanium property (the Elk Creek Project) located in Southeastern Nebraska. The Company also holds an interest in a mineral exploration property located in Canada. The Company’s Elk Creek Project is a niobium and scandium exploration project that also contains titanium. The Elk Creek Project is located approximately 75 kilometers southeast of Lincoln, Nebraska, the state capital of Nebraska. The Company has not generated any revenues. Its subsidiaries include 0896800 BC Ltd., Elk Creek Resources Corp. and Silver Mountain Mines Corp.
