Titan Iron Ore Corp. (“Titan”, the “Company”) ( OTCQB : TFER ) is pleased to announce it has entered into an agreement with an accredited investor (“Investor”) to secure equity line financing. Separately, the Company also received funding from convertible debentures.
Under a Securities Purchase Agreement, upon Titan registering its common shares under a registration statement, the Investor will make equity financing available to the Company over a 36-month commitment, allowing the Company to sell up to $10,000,000 in value of its common shares. The Company will determine, at its own discretion, the timing and amount of its sales of stock, subject to certain conditions and limitations. Shares will be priced at a 10% discount from the Volume Weighted Average Prices (“VWAP”) for the Company’s common stock during the five consecutive trading days following a sales notice, but are limited to $250,000 per pricing period. The Investor will also receive Commitment shares up to a total of 3% of the $10 million commitment amount for the equity line. The Company can terminate the line at any time.
In addition to equity line financing, the Company is receiving bridge loans in the form of convertible debentures with gross proceeds to the Company of $200,000. These debentures carry an interest rate of 5%, with an original issue discount of 15%, and are convertible at the lesser of: (a) $0.27 during the six months following the closing date, and $.35 thereafter, and (b) 70% of the average daily VWAP for the common stock during the ten (10) consecutive trading days immediately preceding the applicable conversion date. The investors will also collectively receive 3-year warrants to purchase a total of 705,901 shares at an exercise price of $0.25. A finder’s fee of 9% and 9% in warrants is payable to an affiliate of the Investor with respect to a portion of the convertible debenture financing. Other finder’s fees may be payable.
