BRIEF

on SouthGobi Resources Ltd. (isin : CA8443751059)

SouthGobi Amends Terms with Major Shareholder

SouthGobi Resources Ltd., a coal mining entity, announced an amendment to its Convertible Debenture agreement with JD Zhixing Fund L.P. (JDZF), which holds a substantial share in SouthGobi. The amendment now allows the company to prepay its principal amount optionally and without penalties as decided by its board. This move aims to enhance the financial flexibility of SouthGobi, giving it an upper hand in managing its capital more efficiently.

The amendments include conditions such as providing JDZF an irrevocable notice of prepayment three business days in advance and ensuring that the prepayment amount matches specific criteria. The alteration requires no additional consideration to JDZF apart from the set terms. Approval procedures for this amendment involve compliance with the Toronto Stock Exchange-Venture (TSX-V), the Hong Kong Stock Exchange rules, and obtaining endorsements from disinterested shareholders.

This corporate action supports SouthGobi's strategy to optimize financial management and is seen as beneficial for the company's future operations and its shareholders. The modification is acknowledged to be fair and executed at normal commercial terms, showing commitment towards the company’s growth and operational efficiency.

R. E.

Copyright © 2024 FinanzWire, all reproduction and representation rights reserved. Disclaimer: although drawn from the best sources, the information and analyzes disseminated by FinanzWire are provided for informational purposes only and in no way constitute an incentive to take a position on the financial markets.

Click here to consult the press release on which this article is based

See all SouthGobi Resources Ltd. news