said March 30that it has entered into a debt settlement agreement with Linx Partners Ltd. tosettle, through the issuance of units, the C$1.5 million which the company owedto Linx under the revolving credit facility agreement dated March 12, 2015.
Under the agreement,the company will issue 75,000,000 units to John Lee, the executive chairman of Prophecywho controls Linx, at a deemed price of 2 cents per unit. Each unit consists of1 common share in the capital of the company and 1 purchase warrant, which entitlesthe holder to acquire additional shares at a price of 4 cents per share within fiveyears from the date of issuance.
Earlier in themonth, Prophecy and Linx raisedthe loan ceiling for the said revolving credit facility to C$2.5 million.
The companyalso said it has entered into a subsequent consulting agreement with Cor CapitalInc. Cor Capital will provide certain investor relations and shareholder communicationservices to the company in exchange for the issuance of 300,000 common shares, tobe issued through the company's share-based compensation plan.
Prophecy alsosaid it looks to consolidate its issued and outstanding shares the basis of 1 newshare for every 100 old shares, subject to shareholder approval and TSX acceptance.The consolidation will occur immediately after TSX approval.