Barksdale to extend debentures held by Delbrook to 2028

Executive Summary

• Barksdale Resources Corp. is amending the terms of existing convertible debentures held by Delbrook Capital Advisors to extend maturity dates and reduce conversion/exercise prices, in exchange for issuing additional warrants.
• The restructuring involves two tranches of secured convertible debentures totaling $4.5 million in principal amount, with maturities extended from December 31, 2027, to December 31, 2028.
• As consideration for the amendments, Barksdale will issue 7 million new detachable common share purchase warrants to Delbrook, exercisable at $0.09 per share until December 31, 2028.

Key Details

• Amendment to $1.5 Million Debenture Tranche:
  • Maturity Extension: Extended from December 31, 2027, to December 31, 2028.
  • Conversion Price Reduction: Reduced from $0.12 per share to $0.10 per share.
  • Associated Warrants: The 8 million existing detachable common share purchase warrants have their expiry date extended from December 31, 2027, to December 31, 2028, and their exercise price reduced from $0.12 per share to $0.10 per share.
  • Interest Rate: 10% per annum.
• Amendment to $3 Million Debenture Tranche:
  • Maturity Extension: Extended from December 31, 2027, to December 31, 2028.
  • Associated Warrants: The 7.5 million existing detachable common share purchase warrants have their expiry date extended from December 31, 2027, to December 31, 2028.
  • Interest Rate: 10% per annum.
• New Warrant Issuance (Consideration):
  • Quantity: 7 million detachable common share purchase warrants.
  • Exercise Price: $0.09 per share.
  • Expiry Date: December 31, 2028.
• Put Rights:
  • Both the $1.5M and $3M debentures are subject to a holder put right allowing Delbrook to require repurchase on or after December 31, 2027, prior to maturity, with at least 20 days' written notice.
  • If a put is exercised, the expiry date of the proportionate number of detachable warrants pertaining to the repaid principal is accelerated to the put date.
• Regulatory Conditions:
  • Amendments and new securities are subject to TSX Venture Exchange acceptance.
  • Securities issued are subject to a four-month-plus-one-day hold period under Canadian securities legislation.