Toronto, Ontario--(Newsfile Corp. - September 18, 2019) - This press release is being disseminated as required by National Instrument 62 103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues in connection with the filing of an early warning report (the "Early Warning Report") regarding the acquisition of securities of Environmental Waste International Inc. (TSXV: EWS) (the "Company") by EWI Investors, LLC ("EWI").
EWI entered into a debt settlement agreement with the Company dated September 16, 2019 under which EWI agreed to settle $710,000.00 of indebtedness in exchange for 14,200,000 common shares in the capital of the Company at a deemed price of $0.05 per common share (the "Debt Settlement").
As part of the Debt Settlement, EWI and the Reporting Issuer entered into an amendment to the promissory note dated April 12, 2017 held by EWI to reduce the principal amount from $1,537,130 to $1,000,000 (the "Note"), and extend the maturity date from September 30, 2019 to July 15, 2021 (the "Amended Note Transaction"). All other terms remain the same.
The Reporting Issuer has also negotiated an amendment to the unsecured convertible note dated April 28, 2017 (the "Convertible Note") with EWI, of which Robert Savage, a Director of the Reporting Issuer, is the Managing Member (the "Amended Convertible Note Transaction"). The Convertible Note will be amended to increase the principal amount from $1,350,000 to $1,850,000 and the conversion price will be reduced from $0.11 per common share to $0.08 per common share for the next 12 months from closing, after which the conversion price will increase to $0.10 per common share until the maturity date. The Convertible Note bears interest at a rate of 5% per annum and has a maturity date of April 28, 2022. All other terms remain the same as the original convertible note.
Following the Debt Settlement, EWI beneficially owns 23,772,500 common shares, 3,712,500 warrants, 225,000 options, a $1,000,000 Note and a $1,850,000 Convertible Note in the capital of the Company, representing approximately 11.1% of the issued and outstanding securities of the Company on a partially diluted basis. Prior to the Debt Settlement, EWI owned 9,572,500 common shares, 3,712,500 Warrants and 225,000 options, representing 13.8% of the issued and outstanding common shares of the Reporting Issuer on a fully diluted basis.
The 14,200,000 common shares were acquired for investment purposes. EWI may, from time to time, take such actions in respect of its holdings in securities of the Company as it may deem appropriate in light of the circumstances then existing, including (i) acquiring, exercising, converting, exchanging, selling or otherwise disposing of securities of the Company or securities exercisable for, or convertible or exchangeable into, securities of the Company, and (ii) developing plans or intentions or taking actions which relate to or would result in one or more of the transactions or matters referred to in paragraphs (a) through (k) of Item 5 of the Early Warning Report filed on SEDAR.
A copy of EWI's Early Warning Report with respect to the foregoing is filed under applicable securities laws and is available under the Company's profile on SEDAR at www.sedar.com.
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