BacTech swaps shares for debt (February 09, 2006)

Restructuring bug-wrangler BacTech Mining (BM-V, BMCFF-O) has inked several major creditors to a shares-for-debt scheme.

The deal will see BacTech issue some 6.1 million shares at a deemed price of 12 a share to eliminate $732,597 worth of outstanding obligations, including interest payable on BacTech’s $3-million debenture held by Prudent Global Income Fund. Some 1.9 million of the shares will go to BacTech’s own employees, officers and directors in lieu of pay for the past 8 months.

When the dust settles, some $872,0000 worth of debt remain on the books, for which the company will need to arrange additional financing. BacTech says it has also received a claim from one creditor totalling US$1.8 million. BacTech disagrees with this amount, figuring it at around US$110,000, and plans to “vigorously defend itself against this claim.”

The share-swap is subject to regulatory approvals. In the end, BacTech’s share count would rise to around 45.6 million.

BacTech specializes in bacterial oxidation technology for the recovery of gold, silver and base metals from refractory ores and concentrates.

Shares in BacTech were 3 better at 10.5 in morning trading in Toronto fo9llowing the news on Feb .9.

Print

Be the first to comment on "BacTech swaps shares for debt (February 09, 2006)"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close