Our occasional series moves into the new century with today’s NR out of Silver Bear Resources (SBR.to), a veritable gem of a missive that rambles on and on, but in essence carried a simple message that can be translated in just nine words.
TORONTO, Sept. 05, 2017 (GLOBE NEWSWIRE) — Silver Bear Resources Plc (“Silver Bear” or the “Company”) (TSX:SBR)
takes note of the recent conversion by the Company’s major
shareholders, A.B. Aterra Resources Ltd. (“Aterra”) and Inflection
Management Corporation Limited (“Inflection”), of their respective
outstanding convertible promissory notes (the “Notes”), which was
announced on August 30, 2017 by both Aterra and Inflection (the “Major
Shareholders”). The Aterra and Inflection Notes represented C$4,505,144
and C$13,515,432 principal amount respectively, in addition to their
respective accrued and unpaid interest.Prior
to the conversion, Aterra held 40,468,579 common shares of Silver Bear,
representing 24.8% of the Company’s then shares outstanding and
Inflection held 41,176,471 common shares of Silver Bear representing
25.2% of the Company’s then shares outstanding. After the conversion of
the principal amount of the Notes and accrued and unpaid interest
thereon, Silver Bear now has an aggregate of 668,047,513 common shares
outstanding. Of these, Aterra holds 166,611,092 common shares,
representing 24.9% of the total issued and outstanding common shares and
Inflection holds 419,833,120, representing 62.8% of the total issued
and outstanding common shares.Graham Hill, President and Chief Executive Officer, commented:
“We understand that the Major Shareholders’ decision has caused
significant dilution. However, it should be noted that their action has
significantly reduced the company’s outstanding debt and resulted in a
healthier balance sheet. This will improve cash flows after the Company
goes into production and should allow for further financing on more
attractive terms.“The Notes were originally
issued in November 2015 and in January 2016 were overwhelmingly approved
by minority and disinterested shareholders at shareholder meetings. The
conversion price of the Notes was set at a significant premium to the
market price of Silver Bear’s common shares at the time which were
trading in and around the $0.02 range.”Mr. Hill
continued: “We are exceedingly grateful to Aterra and Inflection for
their support at a crucial time in the Company’s development, in
addition to their continued and ongoing support. Aterra and Inflection
provided financing at a time when no other investors would and have
afforded the Company the opportunity to advance the project for the
benefit of all of its shareholders. Their decision does not at all
affect the robustness of the Mangazeisky Silver Project, which, as
reported in our previous press release on the 28th of August,
is well advanced in its development towards production and continues to
be a very attractive project, both economically and technically.”About Silver Bear
And this is what it means:
Our share price is screwed and we know it.