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TORONTO, ONTARIO--(Marketwired - Oct. 4, 2016) - MCW Energy Group Limited ("MCW") (TSX VENTURE:MCW)(OTCQX:MCWEF), a Canadian holding company involved in the development of environmentally-friendly oil sands technologies and the production of oil from Utah's vast oil sands deposits, announces amendments (the "Amendments") of two debentures (the "Debentures") in the aggregate amount of US$1.1 million with two private arm's length lenders (the "Holders"), originally announced on October 14, 2014. Pursuant to the Amendments, the Debentures will be convertible, at the option of the Holders, into common shares of MCW at $0.15 per common share at any time prior to the date of maturity of the Debentures (the "Maturity Date") which, pursuant to the Amendments, has been extended to January 31, 2017. The following amendments were also made to the Debentures: (i) warrants to purchase up to an aggregate of 500,000 common shares of MCW issued to the Holders in connection with the Debentures shall be cancelled; (ii) from June 1, 2016, interest is payable at a rate of 1.25% per month; (iii) if the outstanding amounts are not paid in full on or before the Maturity Date, a penalty of 10% will become payable on any amounts outstanding; and (iv) a fee of 5% is payable on the amounts outstanding as at June 1, 2016. The amended Debentures, and any common shares issuable upon conversion of the Debentures, will be subject to a four month hold period from the date of issuance. |
