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Metalla Increases Convertible Debt Facility by $20 Million

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Metalla Increases Convertible Debt Facility by $20 Million

 

 

 

 

 

Metalla Royalty & Streaming Ltd. (NYSE American: MTA) (TSX-V: MTA)  is pleased to announce it has entered into an amendment and restatement agreement with respect to its Convertible Loan Facility with Beedie Capital to fund acquisitions of new royalties and streams.

 

Brett Heath, President & CEO of Metalla commented, “We are thrilled to expand our productive and mutually beneficial relationship with Beedie Capital as a cornerstone investor as we continue to grow our business. Beedie Capital has been an extremely supportive shareholder of Metalla, and we look forward to deploying our expanded and enhanced facility on future accretive royalty and streaming transactions.”

 

David Bell, Managing Director of Beedie Capital commented, “We have had a great experience working with Metalla and are very excited to expand our partnership. Brett and the team have continued to deliver on a repeatable and scalable strategy of acquiring highly accretive royalties and streams over high growth projects with top tier counterparties.  We look forward to supporting the acceleration and growth of their business.”

 

HIGHLIGHTS OF THE AMENDMENT

 

  • Increases Beedie Capital’s cumulative committed capital into Metalla to over $32M;
  • The initial Loan Facility included a $12M loan facility, of which $7M was previously drawn by Metalla, and $5M remained available;
  • Beedie Capital has agreed to convert $6M out of the $7M drawn on the initial Loan Facility at a price of $5.56 per Metalla share in accordance with the conversion rights provided for in the initial Loan Facility;
    • The remaining $1M outstanding will be subject to conversion in accordance with the Amendment;
  • The remaining $5M available from the initial Loan Facility will be drawn by Metalla concurrent with the Conversion and the conversion price of such amount will be re-priced from $5.56 to $9.90 per Metalla share;
    • The new conversion price represents a 78% premium to the initial conversion price and a 27% premium to the 30-day volume-weighted average price of the Metalla shares on the TSXV;
  • The Loan Facility will be increased by an aggregate of $20M made available to Metalla to fund one or more future acquisitions;
  • All future advances from the additional $20M will have a minimum amount of $2.5M and its own conversion price based on the 30-day VWAP on the date of such advance;
  • If for a period of 30 consecutive trading days the 30-day VWAP is at a 50% premium above any or all of the conversion prices, Metalla may elect to convert the principal amount outstanding under the Loan Facility at the respective conversion prices;
  • Reduced standby fee on all undrawn funds available in Loan Facility will bear an interest rate of 1.5% per annum (previously it was 2.5%);
    • The interest rate on all drawn funds remains at 8.0% per annum.

 

The transaction is subject to customary closing conditions, including obtaining the requisite TSXV and NYSE American LLC approvals, and is expected to close on or before August 7, 2020. 

 

ADVISORS AND COUNSEL

 

PI Financial Corp. acted as financial advisor, and DLA Piper (Canada) LLP and Dorsey & Whitney LLP acted as legal counsel for Metalla. McCarthy Tetrault LLP acted as legal counsel for Beedie Capital.

 

ABOUT BEEDIE CAPITAL

 

Beedie Capital is the family office investment arm of Beedie, the largest private industrial owner, developer, and property manager in Western Canada.  Beedie Capital partners with ambitious operators of high-growth public and private companies across a variety of industry sectors in North America.

 

ABOUT METALLA

 

Metalla was created to provide shareholders with leveraged precious metal exposure by acquiring royalties and streams. Our goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns. Our strong foundation of current and future cash-generating asset base, combined with an experienced team, gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle.

 

Posted July 29, 2020

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