Earthworks settles $500k (U.S) installment payment to North Bay
Earthworks Industries Inc. (“Earthworks”) and North Bay Corporation (“North Bay”) have agreed in an Amendment Agreement dated February 4, 2022 (“Amendment Agreement”) to revise and settle the $500,000 (U.S.) installment payment due to be paid by Earthworks March 31, 2022, pursuant to the Settlement Agreement between Earthworks and North Bay (“Settlement Agreement”) as follows:
(a) By payment of $25,000 toward the installment by payments of $12,500 paid upon execution of the Amendment Agreement and $12,500 to be paid by August 31, 2022;
(b) $250,000 will be settled by the issuance by Earthworks to North Bay of 1,270,000 Units – at a deemed price of $0.1970 (U.S.) or $0.25 (CDN) per Unit – total $317,500 (CDN); each Unit consisting of one fully paid voting common share in the capital of Earthworks and a ½ share purchase warrant – each full Warrant being exercisable until February 28, 2024, to purchase one fully paid voting common share of Earthworks for $0.35 (CDN);
(c) The remaining $225,000 of the installment payment will continue to be part of the Balance Amount owing – as defined in the Settlement Agreement;
(d) The amount Earthworks will have to pay to exercise its Payout Option, pursuant to the Settlement Agreement, is increased to $2,500,000 (U.S.).
This Amendment Agreement is subject to it being accepted for filing by the TSX Venture Exchange by April 15, 2022.