Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF) told investors it has amended its secured convertible debenture with G2 Energy Corp (CSE:GTOO, OTC:GTGEF), with the new terms extending the maturity date and giving Cloudbreak discretion to convert the principal into new equity.
"We are very pleased to have agreed this Amending Agreement with G2,” Cloudbreak chief executive Andrew Male said in a statement.
“While the original agreement provided for appropriate security and performance, it lacked the substance required for an investment of this nature.
“Cloudbreak's investment position is now stronger and in line with the commercial objectives of G2.”
The new debenture terms see maturity move to May 2025, with an option to extend further to May 2026.
Cloudbreak, meanwhile, opted to convert USD$60,000 of interest under the debenture into 2,000,000 equity units at CAD$0.03 per unit – with each unit comprising one share and one share warrant.
The amendments are part of a broader agreement that also sees a restructuring of G2's board to include two nominees from Cloudbreak.
At the same time, G2 has secured an additional loan of USD$250,000.00 from Clarmond Wealth Limited, with the borrowing expected to enhance oil and gas production on the Masten Property in Texas.
“The additional loan provided by Clarmond will serve to enhance the production profile of G2 as well and in turn is expected to make Cloudbreak's investment more valuable and accretive to its underlying net asset value,” Cloudbreak’s Andrew Male added.