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Abstract
As previously announced, the Company has arranged US$13 million in debt financing (the "Loan") from Investec Bank (UK) PLC ("Investec") to partially finance the Acquisition. In connection with the Loan, the Company has agreed to issue to Investec detachable warrants (the "Loan Warrants"). The number of common shares which may be issued upon exercise of the Loan Warrants is subject to variations in the trading price of the Company's shares, and prevailing exchange rates at the time of issue. The Company currently estimates that no more than 20,600,000 Loan Warrants will be issued. Each warrant will be exercisable to acquire one common share. Approximately 13 million warrants will be exercisable for four years following the closing of the Acquisition at a price of $0.76 per share and approximately 7.6 million additional warrants will be exercisable at a minimum $0.87 per share for up to six years from closing of the Acquisition. Shareholders approved the warrants and the issue of shares upon exercise of the warrants to Investec.