Earthworks Industries Inc. (“Earthworks”) and North Bay Corporation (“North Bay”) have agreed in an Amendment Agreement dated February 22, 2021 (“Amendment Agreement”) to revise and settle the $500,000 (U.S.) installment payment due to be paid by Earthworks March 31, 2021 pursuant to the Settlement Agreement between Earthworks and North Bay (“Settlement Agreement”) as follows:
- 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, 2021;
- $250,000 will be settled by the issuance by Earthworks to North Bay of 1,575,000 Units –at a deemed price of $0.1587 (U.S.) or $0.20 (CDN) per Unit – total $315,000 (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, 2023 to purchase 1 fully paid voting common share of Earthworks for $0.30 (CDN);
- The remaining $225,000 of the installment payment will continue to be part of the Balance Amount owing – as defined in the Settlement Agreement;
- The amount Earthworks will have to pay to exercise its Payout Option, pursuant to the Settlement Agreement, is increased to $2,375,000 (U.S.).
This Amendment Agreement is subject to it being accepted for filing by the TSX Venture Exchange by April 30, 2021.