European Lithium Ltd - Conversion of Debt
RNS Number : 9754N
European Lithium Limited
27 May 2020
 

27 May 2020

European Lithium Ltd

("European Lithium", "EUR" or "the Company")

EUROPEAN LITHIUM CONVERSION OF DEBT

European Lithium Limited (ASX:EUR, FRA:PF8, NEX:EUR, VSE:ELI) ("EUR" or the "Company") is pleased to announce that it has come to an agreement with the following creditors and short term loan holder to convert up to $742,918 of current debt into equity (subject to regulatory approval) (Debt Conversion): 

 

Creditor

Services or Description

Debt to be Converted

Shares to be issued

Ritchie Campbell

Short Term Loan Holder

$370,323

8,229,391

Okewood Pty Ltd

Director fees

$44,000

977,776

Hollywood Marketing (WA) Pty Ltd

Director fees

$22,000

488,890

Marnichar Nominees Pty Ltd ATF the Hallemar Trust trading as CRMS

Director fees

$7,948

176,622

Alexander Guy

Funds advanced to the Company

$2,000

44,444

Dietrich Wanke

CEO fees

$52,500

1,166,675

EVP Investments Pty Ltd*

PR and IR services

$12,100

268,890

GEO Unterweissacher GmbH*

Geological consulting services

$75,764

1,683,653

Bellatrix Corporate Pty Ltd

Accounting and company secretarial services

$40,500

900,001

WH Ireland Limited*

NEX adviser and broker retainer fees

$115,783

2,572,966

Total


$742,918

16,509,308

* Subject to receipt of final executed agreement

 

Debts will be converted based on a share price of 4.5c with a free attaching 1 for 1 unlisted option with an exercise price of 5c expiring on 31 July 2022 (Option).  The share price of 4.5c has been determined based on the 20 day VWAP prior to 22 May 2020.  The maximum number of securities to be issued pursuant to the Debt Conversion is 16,509,308 fully paid ordinary shares (Shares) and 16,509,308 Options. 

 

The Debt Conversion includes a portion of amounts owing to Directors of the Company.  The issue of 1,643,288 Shares (Director Shares) and 1,643,288 Options (Director Options) to Directors will be subject to shareholder approval at the Company's next general meeting.

 

Excluding Director Shares and Director Options, the remaining 14,866,020 Shares and 14,866,020 Options are proposed to be issued under the Company's LR 7.1 capacity.

 

This announcement has been authorised for release to the ASX by the Board of the Company.

 

Tony Sage
Non-Executive Chairman
European Lithium Limited

 

- END -

 

Visit the Company's website (www.europeanlithium.com) to find out more about the advanced Wolfsberg Lithium Project located in Austria.

For further information please contact:

European Lithium Ltd

+61 861 819 792

Tony Sage

ir@europeanlithium.com

 

NEX Corporate Adviser

+44 207 220 1666

James Joyce


James Sinclair-Ford


 


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