Earlier this month, Canadian mining company Eco Oro Minerals Corp. announced that its plan of arrangement has become effective. The plan of arrangement falls under the Business Corporations Act in the Canadian province of British Columbia.
“Under the plan of arrangement,” said the Vancouver-based Eco Oro in a statement, “a portion of the contingent value rights (CVRs) issued by the company were redistributed among the electing shareholders of the company that did not previously hold CVRs.”
These CVRs are now held by Kingsdale Partners LP, which serves as “agent and depositary” for the participating electing shareholder “pursuant to a custodian and depositary agreement.” This agreement was previously agreed to by the electing shareholders and has been established between the company and and Kingsdale Partners.
Under the agreement, “the conversion of certain of the company’s notes was rescinded such that the 10,600,000 shares issued in connection therewith were cancelled and the company reinstated and reissued approximately $4,721,257 USD principal amount of notes originally converted, resulting in an aggregate principal amount of approximately $9,672,727 USD of notes currently outstanding.”
The agreement also called for 1,750,000 options of the Eco Oro to be “terminated for no consideration.”