DIRTT to issue 3.9M shares to settle $1.56M debt with activist shareholder 22NW

DIRTT ENVIRONMENTAL SOLUTIONS LTD

DIRTT acknowledges $1,559,898 debt to 22NW for expenses from April 2022 contested director election.
Debt to be settled by issuing 3,899,745 common shares at $0.40/share, subject to shareholder and TSX/Nasdaq approval.
22NW currently holds ~19.5% of DIRTT (19,234,034 shares); issuance would further increase their stake.
Board Chair says reimbursement appropriate as 22NW was prevailing party; share issuance strengthens balance sheet.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

DIRTT ENVIRONMENTAL SOLUTIONS LTD entered into Share Issuance Agreement with 22NW valued at $0.40 per Common Share (effective 2023-03-15).

Action: entry
Agreement: equity purchase
Counterparty: 22NW
Value: $0.40 per Common Share
Effective: 2023-03-15

Exact text from the filing

Also on March 15, 2023, in connection with the entry into the Debt Settlement Agreement, the Company entered into a share issuance agreement with 22NW (the “Share Issuance Agreement”), pursuant to which the Company agreed to repay the Debt with the issuance of 3,899,745 common shares of the Company (“Common Shares”) to 22NW at a deemed price of $0.40 per Common Share

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

DIRTT ENVIRONMENTAL SOLUTIONS LTD entered into Debt Settlement Agreement with 22NW Fund, LP and Aron English valued at $1,559,898 (effective 2023-03-15).

Action: entry
Agreement: settlement
Counterparty: 22NW Fund, LP and Aron English
Value: $1,559,898
Effective: 2023-03-15

Exact text from the filing

On March 15, 2023, DIRTT Environmental Solutions Ltd. (the “Company”) entered into a debt settlement agreement (the “Debt Settlement Agreement”) with 22NW Fund, LP and Aron English (collectively, “22NW”).

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DIRTT ENVIRONMENTAL SOLUTIONS LTD filing history →

Source: SEC EDGAR

accession 0001193125-23-075861

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