Gran Colombia Gold Announces Shareholders' Approval of the Consolidation of Its Common Shares and Debt Extension Proposal
/EINPresswire.com/ -- TORONTO, ON--(Marketwired - April 24, 2017) - Gran Colombia Gold Corp. (TSX: GCM) announced today that the proposals to consolidate its common shares and to extend its Senior Secured Convertible Debentures due 2020 ("2020 Debentures") were both overwhelmingly supported by those who voted at today's Special Meeting of Shareholders. The detailed results of the votes for each matter are set out below:
| SPECIAL MEETING OF SHAREHOLDERS | ||||||
| Item | Description of matter | Outcome | Voted | Voted (%) | ||
| 1. | Approval of a special resolution authorizing a consolidation of the Corporation's issued and outstanding common shares on a one post-consolidation share for every fifteen pre-consolidation shares (1:15) basis, subject to approval of the Toronto Stock Exchange, as more specifically set out in the Management Information Circular. | Approved | 104,968,502 For 13,528,921 Against |
88.6% 11.4% |
||
| 2. | Approval of an ordinary resolution, the full text of which is set forth in Schedule A of the Management Information Circular, to approve the extension of the maturity date, and the increase of the interest paid over the remaining term, of certain of the Corporation's issued and outstanding 2020 Debentures, and any other ancillary changes, at the option of the holders thereof, all as more particularly described in the Management Information Circular. | Approved | 64,650,827 For
5,201,514 Against |
92.6% 7.4% |
||
The Company intends to effect the share consolidation shortly and will provide further details as they become available.
2020 Debenture Extension Proposal
The Company also announced today that it has received conditional listing approval from the Toronto Stock Exchange, subject to meeting the required conditions, for the listing of extended 2020 Debentures if the extension proposal is approved by holders of the 2020 Debentures and becomes effective. As previously disclosed in the Company press releases dated March 6 and April 11, 2017, the Company is seeking to amend the Amended and Restated Indenture dated as of January 20, 2016 relating to the 2020 Debentures through a consent solicitation process (the "Consent Solicitation") to voluntarily extend the maturity date of the 2020 Debentures. The extended 2020 Debentures will carry largely the same terms and conditions as the other 2020 Debentures except that the maturity date will be extended to 2024 and interest will be paid monthly over the remaining term of the extended 2020 Debentures at an annual rate of 8%. If the Consent Solicitation is approved by 2020 Debenture holders and becomes effective, it is anticipated that the extended debentures will be posted for trading under the symbol "GCM.DB.X".
With receipt of the approval of the Company's shareholders for the Consent Solicitation to proceed, the Company reminds its 2020 Debenture holders to review the Consent Solicitation materials, which can be found on the Company's website at www.grancolombiagold.com and on the Company's SEDAR profile at www.sedar.com. Holders may also contact Kingsdale Advisors for additional information or assistance in providing their consent or election by telephone at 1-877-659-1819 (North America toll free) or by e-mail at contactus@kingsdaleadvisors.com.
The Consent Solicitation will expire at 5:00 p.m. (Toronto time) on May 11, 2017, unless extended at the sole discretion of the Company. Eligible holders who desire to extend the maturity of their 2020 Debentures, conditional on such amendments becoming effective, can also make their election at or prior to 5:00 p.m. (Toronto time) on May 11, 2017, unless extended at the sole discretion of the Company.
The Consent Solicitation continues to be subject to certain conditions and approvals including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals. Terms outlined herein may be amended as required to receive such approvals.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing an expansion and modernization project at its Segovia Operations.
Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com
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