Marret Asset Management said July 15 that, on behalf of various client accounts under management, it has successfully completed the acquisition of C$9.5m principal amount of 10% senior secured convertible bonds of Cline Mining, a Canadian company that controls an idled coal mine in Colorado.
Approximately C$3.2m of the Convertible Bonds were issued as payment for the June 17 interest payment owing to Marret client accounts and approximately C$3.19m of the Convertible Bonds were issued as payment for certain fees owing to certain Marret client accounts. The balance of the Convertible Bonds were issued for cash equal to their principal amount.
Prior to the acquisition, Marret client accounts did not own or control any Convertible Bonds or common shares of Cline. After giving effect to the acquisition, Marret client accounts will beneficially own and control, directly and indirectly, the Convertible Bonds which are convertible into 1,898,199,600 common shares of Cline based on an exercise price of C$0.005 per share of the company, representing 90.08% of the company’s issued and outstanding shares on a non-diluted basis.
Marret said it acquired the Convertible Bonds for investment purposes on behalf of various client accounts and may, depending on market and other conditions, increase or decrease the client accounts’ beneficial ownership, control or direction over the shares, through market transactions, private agreements, or otherwise.
Cline is a Canadian mining company focused on the maintenance and development of its 100% owned New Elk coking coal mine located in Colorado. The company also has interests in metallurgical coal reserves in Canada, an iron ore project in Madagascar, and the Cline Lake gold property in northern Ontario, Canada.
Marret is an employee-owned credit fixed income manager based in Toronto.