PyroGenesis Canada Inc (CVE:PYR) (OTCMKTS: PYRNF) announced Wednesday it has closed on a $903,000 non-brokered secured convertible loan while giving an update on the impact of the coronavirus outbreak.
The loan carries a 12% interest rate, with interest payable in cash on a quarterly basis in arrears and matures September 17, 2021. The loan also is convertible into common shares at a conversion price of $0.28 per apiece subject to a statutory hold period of four months and one day from the closing date.
PyroGenesis intends to use the net proceeds from loan for general corporate purposes.
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In other company news, CEO P. Peter Pascali provided investors a situational update on the effects of the current COVID-19 pandemic and the resulting financial turmoil.
“As a global COVID-19 pandemic sweeps across the globe, it would be an understatement to suggest that these are trying times. The world finds itself in uncharted and precarious territory, a show that has no script. What is certain is that the future is not as certain as we thought it was mere weeks ago. At PyroGenesis, the health, safety and wellbeing of our people, and community, is our number one priority,” he said.
“As such, we immediately implemented an emergency work-from-home policy and, as such, work continues without material interruption. We have also secured our supply lines which, to date, seem to be in order. As a cautionary second step, we managed to secure this loan which we announced today, from a related party, to shore up any unforeseen events that may arise from the current situation. We thought this to be prudent under the circumstances.
He continued: “Current events are presenting a unique set of challenges to businesses. The economic and social impact is already on a scale not seen in the post war era. This uncertain future is leading companies to have to make difficult decisions. At PyroGenesis, we will do our part to ensure all our employees are employed, safe, and healthy. We are also doing our part to source limited supplies from our international contacts to augment the needs of our community health care system.”
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