Business Context and Reporting Period
This Form 8-K was filed by Eurocan Holdings Ltd. on October 18, 2013. The filing discloses the entry into a material definitive agreement involving the issuance of a convertible debenture.
Key Financial Metrics
The filing details a specific debt transaction rather than comprehensive financial statements. Key metrics include:
- Principal Amount: $202,000
- Interest Rate: 5% per annum (simple interest)
- Maturity Date: December 31, 2018
- Conversion Rate: One common share for each $0.01 owed
- Security Status: Unsecured
The filing text does not provide clear values for revenue, profit, cash flow, margins, or overall liquidity positions.
Material Changes
The company replaced existing promissory notes securing $202,000 in debt plus accrued interest with a new convertible debenture issued to Building 400 Ltd. No cash payment was made to settle the prior debt; instead, the holder released the company from the old notes in exchange for the new instrument.
Outlook, Risks, and Management Commentary
The Board of Directors approved the transaction, determining it to be fair and in the best interests of the registrant. The debenture allows for prepayment without penalty and is assignable by the holder subject to securities laws. The filing explicitly states it does not provide other factual information about the registrant and refers investors to other public filings for broader context.
Investor Verification Checklist
- Verify the total outstanding debt and accrued interest prior to this exchange to assess the full liability impact.
- Review the company's current share count to evaluate the potential dilution from the conversion feature ($0.01 per share).
- Confirm the financial status of Building 400 Ltd. as the new creditor.
- Examine subsequent filings for any prepayments or conversions of this specific debenture.