Earthworks Industries Shares Rise on Amended Debt Settlement Agreement

By Adriano Marchese

Earthworks Industries shares rose Thursday morning after the company said it amended a debt settlement agreement, extending the buy-out payment date to mid-April.

At 10:23 a.m. ET, shares were trading 25% higher at 20 Canadian cents (15 cents).

The Canadian solid-waste landfill company and its subsidiary, Cortina Integrated Waste Management, have agreed to an amended debt settlement with North Bay that will see the buy-out payment date for $2.2 million pushed back to April 15 of next year from Oct. 23.

As part of the agreement, North Bay will receive 3.34 million units at 15 cents apiece to settle $500,000 of debt, with each unit made up of one share and a warrant to purchase a share at C$0.40 within the next two years.

Earthworks' debt of $6 million will accrue interest of 10% a year, and Earthworks will also pay North Bay a fee for the extension of the buy-out option payment date of about 25% of the net proceeds of the next financing it does.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 12, 2023 10:44 ET (14:44 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.