Proposed changes to Endomines convertible loan

Press release (PDF)
Endomines AB, Stock Exchange Release 15 November 2019 at 10:45 CET

As announced by Endomines on 10 June 2019, Endomines’ major shareholders, owning more than 20% of the shares in the company, had informed the Board of Directors that they were negotiating possible changes to the terms of Endomines’ convertible loan from TVL Gold. The objective was to change the terms in order for 50% of the convertible loan to be converted during 2019 and the remaining 50% at to be converted at the latest by April 1, 2022.

Endomines, and the shareholders Joensuun Kauppa ja Kone Oy, Wipunen Varainhallinta Oy and Mariatorp Oy, which as of 31 October 2019 together controlled approximately 26% of the outstanding shares of Endomines AB, and TVL Gold have now reached an agreement regarding changes to the terms, that the Board of Directors propose to be resolved upon by the shareholders at an Extraordinary General Meeting. The Board of Directors’ proposed changes to the convertible terms include that the convertible holder TVL Gold shall convert 50% of the convertible loan during 2019, and the remaining 50% on 31 March 2020, by the latest. The proposed conversion rate for the first conversion will be SEK 5.85 per share and for the second conversion SEK 6.00 per share. After full conversion the number of shares in Endomines will increase by 33,490,597 shares, the share capital will increase by SEK 100,591,574, and the net debt will decrease by approximately 170 MSEK. Also, the interest rate is increased to 10% (from 6%). After full conversion TVL Gold will become the main shareholder of Endomines AB and have approximately 29.9% of all the outstanding shares in Endomines AB.

The complete proposals for the changes of the terms will be presented in the notice convening Endomines’ Extraordinary General Meeting, to be held on 10 December 2019.

“The conversion of TVL’s convertible debenture into shares strengthens the company’s cash flow and improves its financial flexibility and negotiating power. We are happy that Greg Smith, who is the main actor of TVL Gold and recently also was appointed CEO of Endomines, has agreed to amend the terms and exercise the convertible debenture prematurely, and the board of Endomines strongly supports this transaction”, says chairman Ingmar Haga.     

For further information, please contact:
Ingmar Haga, Chairman, +358 40 700 35 18  ingmar.haga@endomines.com

This information was submitted for publication through the contact person set out above at 10:45 CET on 15 November 2019.

About Endomines
Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).