MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has executed deeds of variations with Mercer Street Global Opportunity Fund, LLC for convertible security agreements entered between the company and Mercer in 2020 and 2022.
This includes the refinancing of S$2.1 million worth of convertible securities which were due to mature in November 2022, by extending the maturing date by 15 months to February 1, 2024.
Mercer is one of MGC’s top five shareholders and has continued to support the company since its initial involvement with MGC in 2020.
Deeds of variations
MGC entered into an agreement with Mercer in September 2020, whereby Mercer conditionally agreed to provide the company with up to A$15 million in funding, via subscriptions for convertible notes in the company with a face value of A$1.00 each.
In July 2022, the company entered into another agreement with Mercer, whereby the latter conditionally agreed to provide the company with up to a total of US$10 million in funding, via subscriptions for convertible notes with a face value of US$1.00 each.
MGC and Mercer have agreed to extend the maturity date of the 2.1 million convertible notes on the issue from November 24, 2022, to February 1, 2024.
In addition, MGC and Mercer have agreed to vary the terms of the 2022 agreement to amend the minimum conversion price of convertible notes issued after December 23, 2022, from “not less than A$0.014” to “not less than A$0.01”.