Hudson Arranges Additional Debt Financing of up to US$10 Million
FOR IMMEDIATE RELEASE TSX-V: HUD
December 18, 2019 OTC: HUDRF
NR2019-17
HUDSON ARRANGES ADDITIONAL DEBT FINANCING
OF UP TO US$10 MILLION
Vancouver, BC – HUDSON RESOURCES INC. (“Hudson” or the “ Company”) – TSX Venture
Exchange “HUD”; OTC “HUDRF”) reports that it has entered into definitive agreements with its
existing lenders, Cordiant Capital Inc. and its affiliates (“Cordiant”), and Romeo Fund – Flexi and
its affiliates (“Romeo”), with respect to an additional US$10 million six month bridge loan facility
designed to facilitate (a) completion of deliveries to lead customers and (b) completion of its
strategic process announced earlier in 2019 .
The loan agreements provide for an immediate US$10 million loan facility increase, of which the
Company intends to draw down US$6 million immediately. The additional loan facility will be
provided by Cordiant and Romeo on a 50:50 basis. The additional funds bear interest at 20% per
annum and mature on June 16, 2020. In connection with this loan facility increase, the Company
has issued a total of 29,400,000 share purchase warrants to the lenders, each warrant entitling
the holder to purchase one additional share in the capital of the Company until
December 16, 2020, at an exercise price of $0.325 per share. The securities issued, including any
shares issued upon exercise of the warrants, are subject to a 4 month hold period. Subject to
approval of the TSX Venture Exchange, the principal and interest on the additional loan amount
may, in the event of certain change of control transactions, be converted into common shares of
Hudson at the election of the lenders, with pricing based on the market price of the Company's
shares at the time of such conversion.
The net proceeds of the debt financing will be used in support of the logistical costs associated
with the Company’s fulfilment of its first customer purchase order , repayment of temporary
loans from the existing lenders (US$0.5 million), replenishment of restricted cash reserves under
the existing loan facility (US$1.8 million), working capital and general corporate purposes.
Jim Cambon, President commented: “We are pleased to have the continued support of our
lenders to provide this facility for the Company and its Greenland operations , ensuring the
delivery of product to customers and to support the strategic review process which is ongoing”.
As announced on November 20 th, 2019 (NR2019-16) Hudson has commenced shipments of
product to a large customer in the Americas. To date, approximately 3,700 tonnes of product
have been shipped from Hudson’s Savannah warehouse, with the remaining 1,300 tonnes of this
first order expected to be shipped before the end of the year.
Hudson is continuing the s trategic review process it first reported in its news release of
September 6, 2019 (NR2019-15). In connection with loan facility, Cordiant and an affiliate of
Romeo have agreed to support the efforts of Hudson’s independent advisor, in connection with
the Company's pursuit of strategic alternatives.
Hudson, through Hudson Greenland A/S, owns 100% of the White Mountain Anorthosite mine in
Greenland which is permitted for 50 years.
ON BEHALF OF THE BOARD OF DIRECTORS
“Jim K Cambon”
President and Director
For further information:
Ph: 604-628-5002
Forward-Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical
fact included in this news release, including, without limitation, statements regarding the use of proceeds from the financing, and
other future plans and objectives of the Company are forward -looking statements that involve various risks and uncertainties.
There can be no assurance that suc h statements will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from
the Company’s plans or expectations include market prices, general economic, market or business conditions, regulatory changes,
timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the
Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-
looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable
securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.