Entourage Health Enters Into Voting Support Agreement For Amendments To Its Unsecured Convertible Debentures

Entourage Health Corp. ETRGF ENTG (FSE:4WE) has entered into voting support agreements with certain holders of the company’s 8.5% unsecured convertible debentures due September 25, 2022, including Hygrovest Limited, the largest holder of debentures, to vote in favor of certain proposed amendments to the trust indenture dated as of September 25, 2019 between TSX Trust Company and the company governing the debentures. Upon approval of the proposed amendments, the indenture would be amended to, among other things, accelerate the maturity date of the debentures to June 30, 2022 and amend the cash amount payable in respect of the debentures on the new maturity date to be 60% of the principal amount of the debentures, together with any accrued and unpaid interest thereon up to the new maturity date, less any tax required by law to be deducted.

Entourage and its board of directors believe the proposed amendments are aligned with the company’s strategy to implement lasting initiatives that could improve the company’s capital structure and create long-term value for all security holders.

The proposed amendments are subject to approval by the TSX Venture Exchange and the approval of the holders of the debentures. Approval from the debenture holders will be sought at a meeting of the debenture holders on June 20, 2022 to be held virtually. To be effective, the resolution approving the proposed amendments must be passed by at least 66^2/3% of the aggregate principal amount of the debentures represented in person or by proxy at the meeting. Materials for the meeting will be available on SEDAR concurrent with the mailing thereof to registered debenture holders on or around May 26, 2022.

As of May 12, 2022, approximately CA$12.76 million ($9,85 million) aggregate principal amount of debentures are issued and outstanding. The supporting debenture holders beneficially own, in the aggregate, CA$6.33 million aggregate principal amount of debentures, representing approximately 49.6% of the issued and outstanding debentures.

Photo: Courtesy of Entourage Health Corp.

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