REG - European Lithium Ltd - Conversion of Debt

European LithiumAnnouncement

27/05/2020 07:00

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 
 
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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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