Metalla Secures $12 Million Convertible Loan Facility From Beedie Capital
Metalla Secures $12 Million Convertible Loan
Facility From Beedie Capital
TSXV: MTA
OTCQX: MTAFF
Frankfurt
: X9CP
(All amounts expressed in Canadian dollars unless otherwise noted.)
VANCOUVER
,
April 1, 2019
/CNW/ -
Metalla Royalty & Streaming Ltd.
("
Metalla
" or the
"
Company
") (TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to announce a
convertible loan facility (the "
Loan Facility
") of
$12.0 million
(the "
Loan
") with Beedie Capital
("
Beedie
") to fund acquisitions of new royalties and streams. The Loan will be funded by way of an
initial advance of
$7.0 million
within 90 days from closing, and the remaining
$5.0 million
will be
available for subsequent advances in minimum tranches of
$1.25 million
.
Brett Heath
, President, and CEO of Metalla commented: "We are pleased to welcome Beedie as a
partner and strategic investor in Metalla. Beedie has proven to be an exceptional capital partner for
growing businesses. We look forward to having the financial support and backing of Beedie through
our next stage of growth as we continue to add more accretive royalties to our portfolio."
"We are very excited to partner with the Metalla team at their inflection point of becoming a premier
precious metals royalty company," said
David Bell
, Director at Beedie Capital. "We are impressed
by Metalla's ability to repeatedly identify and acquire highly accretive royalty assets and look
forward to supporting them in their next phase of value creation for all of the Company's
stakeholders."
The Loan Facility carries an interest rate of 8.0% on advanced funds and 2.5% on standby funds
available, with the principal payment due 48 months after the date the financing is completed (the
"
Closing Date
"). The Loan can be repaid with no penalty after 18 months and carries no warrant
coverage. The principal amount of the Loan will be convertible into common shares of the Company
("
Metalla Shares
") at a conversion price of
$1.39
, representing a 25% premium to the 30-day
volume weighted average price as of
March 15, 2019
. The Loan Facility will be convertible at any
time, at the option of Beedie and will be secured by certain assets of the Company. Metalla Shares
acquired on conversion will be subject to a four-month plus one day hold period from the date of
advance. Completion of the Loan is subject to acceptance of the Exchange and closing
documentation.
ADVISORS AND COUNSEL
PI Financial Corp acted as financial advisor and Gowling WLG (
Canada
) acted as legal counsel for
Metalla. McCarthy Tetrault served as legal counsel for Beedie.
ABOUT BEEDIE CAPITAL
Beedie Capital is the family office investment arm of Beedie Group, 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
. Please visit
www.beedie.ca/capital
for more information.
ABOUT METALLA
Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with
leveraged precious metal exposure through a diversified and growing portfolio of royalties and
streams. 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.
For further information, please visit our website at
www.metallaroyalty.com
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and CEO
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
Exchange) accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within
the meaning of applicable Canadian and U.S. securities legislation. The forward-looking
statements herein are made as of the date of this press release only, and the Company does not
assume any obligation to update or revise them to reflect new information, estimates or opinions,
future events or results or otherwise, except as required by applicable law.
Often, but not always, forward-looking statements can be identified by the use of words such as
"plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts",
"projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative
variations) of such words and phrases or may be identified by statements to the effect that certain
actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-
looking statements and information include, but are not limited to, statements with respect to the
proposed use of proceeds from the Loan, the activities contemplated in this news release and the
timing and receipt of requisite regulatory, and shareholder approvals in respect thereof and
proposed future transactions Metalla may undertake and their expected timing. Forward-looking
statements and information are based on forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to be reasonable, are
inherently subject to significant business, economic and competitive uncertainties
,
and
contingencies. Forward-looking statements and information are subject to various known and
unknown risks and uncertainties, many of which are beyond the ability of Metalla to control or
predict, that may cause Metalla's actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are developed based on assumptions about
such risks, uncertainties and other factors set out herein, including but not limited to: the
requirement for regulatory approvals and third party consents, the impact of general business and
economic conditions, the absence of control over the mining operations from which Metalla will
purchase gold and receive royalties, including risks related to international operations, government
relations and environmental regulation, the inherent risks involved in the exploration and
development of mineral properties; the uncertainties involved in interpreting exploration data; the
potential for delays in exploration or development activities; the geology, grade and continuity of
mineral deposits; the possibility that future exploration, development or mining results will not be
consistent with Metalla's expectations; accidents, equipment breakdowns, title matters, labor
disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the availability and costs of financing
needed in the future; the inherent uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory
restrictions, including environmental regulatory restrictions; liability, competition, loss of key
employees and other related risks and uncertainties. Metalla undertakes no obligation to update
forward-looking information except as required by applicable law. Such forward-looking
information represents management's best judgment based on information currently available. No
forward-looking statement can be guaranteed, and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on forward-looking statements or
information. Some of the disclosure in this press release is based on information publicly
disclosed by the owners or operators of these properties and information/data available in the
public domain as at the date hereof, and none of this information has been independently verified
by Metalla.
Readers are cautioned that forward-looking statements are not guarantees of future performance.
All of the forward-looking statements made in this press release are qualified by these cautionary
statements.
SOURCE
Metalla Royalty and Streaming Ltd.
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%SEDAR: 00005157E
For further information:
Metalla Royalty & Streaming Ltd., Brett Heath, President & CEO, Phone:
604-696-0741, Email: [email protected]; Kristina Pillon, Investor Relations, Phone: 604-908-
1695, Email:
[email protected], Website: www.metallaroyalty.com
CO: Metalla Royalty and Streaming Ltd.
CNW 07:30e 01-APR-19