News Column

WESTMOUNTAIN GOLD, INC. FILES (8-K) Disclosing Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits

June 9, 2014



Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On June 2, 2014, the Company received the Amendment to Loan and Note Modification Agreement dated as of May 27, 2014 (the "Amendment to Loan Modification Agreement") between the Company and BOCO Investments, LLC ("BOCO") executed by BOCO. The Amendment to Loan Modification Agreement modifies three Loan Agreements, Security Agreements and related Promissory Notes between the Company and BOCO (collectively, the "Loan Documents") that are in default and extends the maturity date of the debt to December 31, 2015, subject to the fulfilment of certain conditions pertaining to an anticipated debt-equity offering by the Company (the "Debt-Equity Offering"). The deadline for meeting these conditions has been extended to June 30, 2014.

The Amendment to Loan Modification Agreement also clarifies the amount of debt owed by the Company to a related party vendor, Minex Exploration. The agreement of Minex and the Company to convert $400,000.00 of the amount owed to Minex Exploration into shares of the Company's common stock at a price per share of $0.45 (the "Minex Conversion") remains unchanged.

Upon completion of the Minex Conversion and upon the fulfilment of certain conditions pertaining to the Debt- Equity Offering, the Company and BOCO have agreed: (i) to provide for the payment and/or conversion of portions of the outstanding Promissory Notes, including all accrued interest thereon, in shares of common stock of the Company; (ii) to extend and re-price some of the warrants previously issued to BOCO in connection with the Loan Documents; (iii) to issue new, additional warrants to BOCO; and (iv) to provide for the investment of additional funds by BOCO in the Debt-Equity Offering.

No assurances can be given as to the Company's ability to meet the conditions set forth in the Amendment to Loan Modification Agreement for the payment or conversion of the Promissory Notes or the extension of the maturity date. In addition, no assurances can be given that the Company will raise any or all of the funds sought in its Debt-Equity Offering.

Item 9.01. Financial Statements and Exhibits.

Exhibit No. Description 99.1 Amendment to Loan and Note Modification Agreement



--------------------------------------------------------------------------------


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Edgar Glimpses


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters