0001144204-16-139232.txt : 20161214 0001144204-16-139232.hdr.sgml : 20161214 20161213175742 ACCESSION NUMBER: 0001144204-16-139232 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20161214 DATE AS OF CHANGE: 20161213 GROUP MEMBERS: RCA V GP LTD. GROUP MEMBERS: RCF MANAGEMENT L.L.C. GROUP MEMBERS: RESOURCE CAPITAL ASSOCIATES V L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: URANIUM RESOURCES INC /DE/ CENTRAL INDEX KEY: 0000839470 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 752212772 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-40754 FILM NUMBER: 162049874 BUSINESS ADDRESS: STREET 1: 6950 S. POTOMAC STREET STREET 2: SUITE 300 CITY: CENTENNIAL STATE: CO ZIP: 80112 BUSINESS PHONE: (303) 531-0470 MAIL ADDRESS: STREET 1: 6950 S. POTOMAC STREET STREET 2: SUITE 300 CITY: CENTENNIAL STATE: CO ZIP: 80112 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Resource Capital Fund V L.P. CENTRAL INDEX KEY: 0001465397 IRS NUMBER: 980622443 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 1400 SIXTEENTH STREET STREET 2: SUITE 200 CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 720.946.1444 MAIL ADDRESS: STREET 1: 1400 SIXTEENTH STREET STREET 2: SUITE 200 CITY: DENVER STATE: CO ZIP: 80202 FORMER COMPANY: FORMER CONFORMED NAME: Resource Capital Fund V, L.P. DATE OF NAME CHANGE: 20090602 SC 13D/A 1 v454904_sc13da.htm SCHEDULE 13D/A

UNITED STATES SECURITIES AND
EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

SCHEDULE 13D

 

Under the Securities Exchange Act of 1934
(Amendment No. 8)

 

URANIUM RESOURCES, INC.

(Name of Issuer)

 

Common Stock, $0.001 Par Value

(Title of Class of Securities)

 

916901507

(CUSIP Number)

 

Catherine J. Boggs
Resource Capital Funds
1400 Sixteenth Street, Suite 200
Denver, CO 80202
United States of America
(720) 946-1444

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

 

December 5, 2016

(Date of Event which Requires Filing of this Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER.

 

 

 

 

1

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)

 

Resource Capital Fund V L.P.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)

(a) ¨

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS (See Instructions)

 

OO

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED ¨

PURSUANT TO ITEMS 2(d) or 2(e)

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

835,554

8

SHARED VOTING POWER

 

0

9

SOLE DISPOSITIVE POWER

 

835,554

10

SHARED DISPOSITIVE POWER

 

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

835,554

12

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨

 

(See Instructions)

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

6.2%

14

TYPE OF REPORTING PERSON (See Instructions)

  

PN

       

 

 - 2 - 

 

 

1

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)

 

Resource Capital Associates V L.P.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)

(a) ¨

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS (See Instructions)

 

OO

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED ¨

PURSUANT TO ITEMS 2(d) or 2(e)

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

835,554

8

SHARED VOTING POWER

 

0

9

SOLE DISPOSITIVE POWER

 

835,554

10

SHARED DISPOSITIVE POWER

 

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

835,554

12

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨

 

(See Instructions)

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

6.2%

14

TYPE OF REPORTING PERSON (See Instructions)

 

PN

       
 - 3 - 

 

 

1

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)

 

RCA V GP Ltd.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)

(a) ¨

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS (See Instructions)

 

OO

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED ¨

PURSUANT TO ITEMS 2(d) or 2(e)

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

835,554

8

SHARED VOTING POWER

 

0

9

SOLE DISPOSITIVE POWER

 

835,554

10

SHARED DISPOSITIVE POWER

 

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

835,554

12

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨

 

(See Instructions)

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

6.2%

14

TYPE OF REPORTING PERSON (See Instructions)

 

OO, HC

       
 - 4 - 

 

 

1

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)

 

RCF Management L.L.C.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)

(a) ¨

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS (See Instructions)

 

OO

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED ¨

PURSUANT TO ITEMS 2(d) or 2(e)

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

58,865

8

SHARED VOTING POWER

 

0

9

SOLE DISPOSITIVE POWER

 

58,865

10

SHARED DISPOSITIVE POWER

 

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

58,865

12

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨

 

(See Instructions)

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

0.4%

14

TYPE OF REPORTING PERSON (See Instructions)

  

OO

       
 - 5 - 

 

 

Item 1. Security and Issuer

 

This Amendment No. 8 to the statement on Schedule 13D amends and supplements Amendment No. 7 to the statement on Schedule 13D, filed by the Reporting Persons on November 10, 2016, Amendment No. 6, filed by the Reporting Persons on November 19, 2015, Amendment No. 5 filed by the Reporting Persons on May 7, 2014, Amendment No. 4 filed by the Reporting Persons on February 7, 2014, Amendment No. 3 filed by the Reporting Persons on March 8, 2013, Amendment No. 2 filed by the Reporting Persons on January 4, 2013, Amendment No. 1 filed by the Reporting Persons on September 13, 2012 and the statement on Schedule 13D filed by the Reporting Persons on March 19, 2012, relates to the beneficial ownership of Common Stock, $0.001 par value per share (the “Common Stock”) of Uranium Resources, Inc. (the “Company”), whose principal executive office is located at 6950 S. Potomac Street, Suite 300, Centennial, Colorado 80112. This amendment is being filed to disclose that the Reporting Persons have sold a portion of their interests in the Company.

 

Item 3. Identity and Background

 

The persons filing this Schedule 13D (collectively, the “Reporting Persons”) are:

 

a.Resource Capital Fund V L.P. (“RCF V”), a Cayman Islands exempt limited partnership, whose address is 1400 Sixteenth Street, Suite 200, Denver, Colorado 80202. The principal business of RCF V is investments.

 

b.Resource Capital Associates V L.P. (“Associates V”), a Cayman Islands exempt limited partnership, whose address is 1400 Sixteenth Street, Suite 200, Denver, Colorado 80202. Associates V is the general partner of RCF V. The principal business of Associates V is to act as the general partner of RCF V.

 

c.RCA V GP Ltd. (“RCA V”), a Cayman Islands exempt company, whose address is 1400 Sixteenth Street, Suite 200, Denver, Colorado 80202. RCA V is the general partner of Associates V. The principal business of RCA V is to act as the general partner of Associates V.

 

d.RCF Management, L.L.C. (“RCFM”), a Delaware limited liability company, whose address is 1400 Sixteenth Street, Suite 200, Denver, Colorado 80202. The principal business of RCFM is to act as investment advisor to the Resource Capital Funds, including RCF V.

 

The sole members of RCA V are Messrs. Ryan T. Bennett, Ross R. Bhappu, Russ Cranswick, James McClements, Henderson G. Tuten and Ms. Sherri Croasdale (collectively, the “Principals”). RCFM is owned by two members – RCFM-EU Holdings L.P. (“RCFM-EU”), a Delaware registered limited partnership, and RCFM GP L.L.C. (“RCFM GP”), a Delaware registered limited liability company, with both RCFM-EU and RCFM-GP having their principal offices in Denver, Colorado. RCFM GP serves as the managing member of RCFM and is also the general partner of RCFM-EU. The investment and finance decisions of RCFM GP are made by the managing member, James McClements, and the other members of the Finance Committee, consisting of Henderson G. Tuten, Sherri A. Croasdale, Mason G. Hills and Michele Valenti. The business of RCA V is directed by the officers of RCA V. The Principals serve as executive officers of RCA V. The business address of each of Messrs. Bennett, Bhappu, Cranswick, McClements, Hills and Tuten and of Ms. Croasdale and Ms. Valenti is 1400 Sixteenth Street, Suite 200, Denver, Colorado 80202. The principal occupation of Messrs. Bennett, Bhappu, Cranswick, McClements, Hills and Tuten and of Ms. Croasdale and Ms. Valenti is serving as senior executives of the Resource Capital Funds which include RCF V.

 

RCF V and Associates V are each Cayman Islands exempt limited partnerships.

 

RCA V is a Cayman Islands exempt company.

 

RCFM is a Delaware limited liability company.

 

Messrs. Bennett, Bhappu, Tuten and Ms. Croasdale and Ms. Valenti are citizens of the United States. Mr. Cranswick is a citizen of Canada. Mr. McClements and Mr. Hills are citizens of Australia.

 

 - 6 - 

 

 

During the last five years, none of the Reporting Persons nor any Principal has been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors). During the last five years, none of the Reporting Persons nor any Principal has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction making such Reporting Person or Principal subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

Item 4. Purpose of Transaction

 

The Reporting Persons are filing this Amendment No. 8 to disclose a sale of a portion of the Reporting Persons’ interests in the Company.

 

Pursuant to a Note Purchase Agreement (the “Note Purchase Agreement”) dated December 5, 2016, RCF V sold to an unrelated party in a private transaction up to $8,000,000 of outstanding indebtedness convertible into shares of Company Common Stock owed to RCF V under a Loan Agreement between RCF V and the Company. Sales under the Note Purchase Agreement will be in two tranches. The initial tranche, completed on December 5, 2016, provides for sale of $2,500,000 aggregate principal amount for a purchase price equal to the principal amount plus $45,139 of interest accrued to the date of purchase on such principal amount. RCF V continues to hold the remaining $5.5 million of currently outstanding indebtedness, which is convertible into 176,282 shares of the Company’s Common Stock. Under the Note Purchase Agreement, sale of the remaining $5,500,000 loan is subject to certain conditions, satisfaction of which is not in the control of the Reporting Persons or the counterparty to the Note Purchase Agreement.

 

None of the Reporting Persons currently has any plans or proposals which relate to or would result in any of the actions or transactions specified in clauses (a) through (j) of Item 4 of Schedule 13D. Each of the Reporting Persons reserves the right to dispose of the securities of the Company or to formulate other purposes, plans or proposals regarding the Company or its securities to the extent deemed advisable in light of general investment policies, market conditions and other factors.

 

Item 5. Interest in Securities of the Issuer

 

As of December 5, 2016, RCF V beneficially owns 835,554 shares of Common Stock of the Company. RCF V may be deemed to have sole voting and dispositive power over, and therefore beneficial ownership of, approximately 6.2% of the issued and outstanding Common Stock of the Company.

 

As of December 5, 2016, Associates V may be deemed to have sole voting and dispositive power over, and therefore beneficial ownership of, approximately 6.2% of the issued and outstanding Common Stock of the Company.

 

As of December 5, 2016, RCA V may be deemed to have sole voting and dispositive power over, and therefore beneficial ownership of, approximately 6.2% of the issued and outstanding Common Stock of the Company.

 

As of December 5, 2016, RCFM beneficially owns 58,970 shares of Company Common Stock, and may be deemed to have sole voting and dispositive power over, and therefore beneficial ownership of, approximately 0.4% of the issued and outstanding Common Stock of the Company.

 

Except as described above and in Item 6, none of the Reporting Persons has effected any additional transactions with respect to the Common Stock of the Company during the past 60 days.

 

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

 

On December 5, 2016, RCF V entered into a Note Purchase Agreement with an unrelated party for sale in a private transaction of up to $8,000,000 of outstanding indebtedness owed to it by the Company under the Loan Agreement, which is convertible into 256,410 shares of Company Common Stock. Sale of $2,500,000 of indebtedness has been completed, and sale of the remaining $5,500,000 is subject to the satisfaction of certain conditions which are not in the control of the Reporting Persons or the counterparty to the Note Purchase Agreement. The Note Purchase Agreement is an exhibit to this report and is incorporated herein by reference (and this description is qualified in its entirety by reference to such document).

 

 - 7 - 

 

 

Item 7.Material to be Filed as Exhibits

 

10.1Stockholders’ Agreement, dated as of March 1, 2012, by and between Uranium Resources, Inc. and Resource Capital Fund V L.P. – Incorporated by reference to Exhibit 10.3 to the Schedule 13D filed by the Reporting Persons on March 19, 2012.

 

10.2Registration Rights Agreement, dated as of March 1, 2012, by and between Uranium Resources, Inc. and Resource Capital Fund V L.P. – Incorporated by reference to Exhibit 10.4 to the Schedule 13D filed by the Reporting Persons on March 19, 2012.

 

10.3Loan Agreement dated as of November 13, 2013 between Resource Capital Fund V L.P. and Uranium Resources, Inc. and its subsidiaries – Incorporated by reference to Exhibit 10.1 to the Form 8-K filed by the Company on November 19, 2013.

 

10.4Amendment No. 1 to Loan Agreement, dated April 29, 2014, among Uranium Resources, Inc., those subsidiaries of Uranium Resources, Inc. from time to time party thereto, and Resource Capital Fund V L.P. – Incorporated by reference to Exhibit 10.1 to the Form 8-K filed by the Company on April 30, 2014.

 

10.5Management Support Agreement, dated August 11, 2015 between Uranium Resources, Inc. and RCF Management L.L.C. – Incorporated by reference to Exhibit 10.5 to the Schedule 13D filed by the Reporting Persons on November 19, 2015.

 

10.6Amendment No. 3 to Loan Agreement dated December 5, 2016, among Uranium Resources, Inc., the subsidiaries of Uranium Resources, Inc. party thereto and Resource Capital Fund V. L.P. – Incorporated by reference to Exhibit 10.1 to the Form 8-K filed by the Company on December 6, 2016.

 

10.7Note Purchase Agreement, dated December 5, 2016, between Esousa Holdings LLC and Resource Capital Fund V L.P.*

 

99.1Joint Filing Agreement, dated as of December 13, 2016*

 

* Filed herewith.

 

 

 

 - 8 - 

 

 

SIGNATURE

 

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

December 13, 2016

 

  RCA V GP LTD.
   
   
  By: /s/ Sheri Croasdale
    Name: Sheri Croasdale
    Title: Chief Financial Officer
   
   
  RESOURCE CAPITAL ASSOCIATES V L.P.
   
   
  By: RCA V GP Ltd., its General Partner
     
  By: /s/ Sheri Croasdale
    Name: Sheri Croasdale
    Title: Chief Financial Officer
   
   
  RESOURCE CAPITAL FUND V L.P.
   
   
  By: Resource Capital Associates V L.P., its General Partner
     
  By: RCA V GP Ltd., its General Partner
     
  By: /s/ Sheri Croasdale
    Name: Sheri Croasdale
    Title: Chief Financial Officer
       
       
  RCF MANAGEMENT L.L.C.
   
   
  By: /s/ Sheri Croasdale
    Name: Sheri Croasdale
    Title: Chief Financial Officer
       

 

 

 - 9 - 

EX-10.7 2 v454904_ex10-7.htm EXHIBIT 10.7

 Exhibit 10.7

 

 

Execution Version

NOTE PURCHASE AGREEMENT

 

THIS AGREEMENT is entered into as of December 5, 2016 by and among Esousa Holdings LLC, a New York limited liability company (the “Buyer”) and Resource Capital Fund V L.P. (the “Seller”).

 

WHEREAS, the Buyer has agreed to purchase, and the Seller has agreed to sell, an aggregate of $8,000,000 in principal amount of and all unpaid interest and fees under (a) the Promissory Note, dated November 13, 2013(the “Note”) issued by Uranium Resources, Inc. (the “Company”) to the Seller pursuant to a Loan Agreement dated as of November 13, 2013, as amended, by and among the Company, the subsidiaries of the Company, and the Seller, in accordance with Schedule A attached hereto.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Purchase and Sale of the Note. Upon the terms and conditions set forth herein and in reliance upon the representations and warranties set forth below, the Buyer, in the amounts as set forth on Schedule A attached hereto, agrees to purchase from the Seller and the Seller agrees to sell, assign, transfer and convey to the Buyer the Note, subject to the terms of this Agreement and the Master Exchange Agreement between the Buyer and the Company, dated as of the date hereof (the “Master Exchange Agreement”). The parties hereto agree that the purchase price payable to the Seller by the Buyer for the Note will be the amount set forth on Schedule A attached hereto (the “Purchase Price”). The Purchase Price shall be paid in installments. The initial installment of the Purchase Price (the “First Installment”) will be due and payable by the Buyer to the Seller on the Initial Closing Date (as defined below). The remaining installment (the “Second Installment”) shall be due and payable by the Buyer to the Seller in accordance with the terms and conditions of this Agreement and the Master Exchange Agreement on the date of commencement of the Second Tranche Pricing Period (as such term is defined in the Master Exchange Agreement). The Seller and the Buyer acknowledge and agree that the date of the Initial Exchange (as such term is defined in the Master Exchange Agreement) shall occur immediately after the Initial Closing Date and therefore agree that the First Installment is due and payable to the Seller on the Initial Closing Date. The unpaid portion of the Note, and the security interests in assets securing repayment of the Note, shall be held by the Seller until such time as the entire Purchase Price is paid by the Buyer to the Seller. During the time that any portion of the Note remains unpaid, the Seller will retain its right and remedies with respect to the then unpaid portion of the Note pursuant to the related loan documents, as well as its security interests in assets securing repayment of the Note. Following the Second Closing, Seller shall transfer to Buyer its security interests in assets securing repayment of the Note.

 

2. Closing. The closing of the purchase by the Buyer and the sale by the Seller of the Note of a principal amount of $2,500,000 (the “Initial Closing”) shall take place simultaneously herewith or at the time and place or by such other means as may be agreed to by the parties (the "Initial Closing Date"). The closing of the purchase by the Buyer and the sale by the Seller of the Note of a principal amount of an additional $5,500,000 (the “Second Closing”) shall take place as soon as practicable, but not more than two Trading Days after the later of (i) the approval of the holders of common stock of the Company to authorize an issuance of common stock of the Company to the Buyer in excess of 19.9% of the total number of shares of outstanding common stock of the Company and (ii) the effectiveness of a registration statement on Form S-3 filed by the Company in accordance with the Master Exchange Agreement (the “Second Closing Date”).

 

 

 

 

3. Mechanics of Delivery of Notes. The Seller shall deliver to the Buyer the applicable paid portion of the Note against the payment of each installment of the Purchase Price for the Note referenced in Schedule A attached hereto. If any such installment of the Purchase Price is less than the full value of the Note with respect to such installment being paid, the Seller shall (i) exchange such Note with the Company for instruments representing the aggregate amount of such Note, one instrument which will reflect the portion of such Note that has been paid for and is to be delivered to the Buyer and (ii) deliver to the Buyer as soon as practicable such instrument representing the portion of the Note paid for by such installment payment (such instrument to bear the same date as the original Note and the same terms and conditions as the original Note, other than the change in the principal amount to reflect the division of the Note into component parts).

 

4. Representations and Warranties of the Seller. The Seller hereby represents and warrants to the Buyer that:

 

(a)       The Note is solely owned by the Seller free and clear and is not subject to any security interests, liens, claims, options, restrictions or other encumbrances of any nature whatsoever, whether fixed or contingent.

 

(b)       The Seller is duly organized and validly existing under the laws of its jurisdiction of organization. The Seller has the right, power and authority to enter into this Agreement, perform its obligations hereunder and to sell the Note to the Buyer.

 

(c)       This Agreement has been duly and validly executed and delivered by the Seller and constitutes the valid and binding agreement of the Seller, enforceable against the Seller in accordance with its terms.

 

(d)       The execution and delivery of this Agreement by the Seller does not, and the performance of the terms of this Agreement by the Seller will not, (i) require the Seller to obtain the consent or approval of, or make any filing with or notification to, any governmental or regulatory authority, domestic or foreign, (ii) require the consent or approval of any other person pursuant to any material agreement, obligation or instrument binding on the Seller or its properties and assets, (iii) conflict with or violate any organizational document or law, rule, regulation, order, judgment or decree applicable to the Seller or by which any property or asset of the Seller is bound, or (iv) violate any other agreement to which the Seller is a party including, without limitation, any voting agreement, stockholders agreement, partnership agreement, irrevocable proxy or voting trust.

 

(e)       Schedule A attached hereto accurately lists as of the Initial Closing Date, (i) the outstanding principal balance of the Note, (ii) the outstanding amount of unpaid accrued interest on the Note, and (iii) the outstanding amount of any other fees, expense or adjustments payable in respect of the Note. Schedule A shall indicate the amount of principal, interest and fees, expenses or adjustments to be paid on the Initial Closing Date and the amount of principal to be paid on the Second Closing Date, with interest to be payable on the Second Closing Date pursuant to the terms of the Loan Agreement.

 

 2 

 

(f)       The Seller is not an affiliate of the Company. The Company has not received from the Seller or paid to the Seller any consideration, fees, commissions or otherwise in connection with the consummation of the transaction and transfer contemplated hereunder, and the Seller will not pay to, or receive from, the Company, any such consideration in the future in connection with such transactions and transfer.

 

(g)       The Seller was not induced to consummate the transaction and transfer contemplated hereunder by any form of general solicitation or general advertising, including, but not limited to, the following: (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar media (including via the Internet) or broadcast over the news or radio; (ii) any registration statement; or (iii) any seminar or meeting whose attendees were invited by any general solicitation or advertising.

 

The representations and warranties of the Seller shall survive the purchase and sale of the Note.

 

5. Representations and Warranties of the Buyer. The Buyer hereby represents and warrants to the Seller that:

 

(a)        The Buyer has the right, power and authority to enter into this Agreement, to perform its obligations hereunder and to buy the Note from the Seller.

 

(b)       Buyer is duly organized and validly existing under the laws of its jurisdiction of organization.

 

(c)       This Agreement has been duly and validly executed and delivered by Buyer and constitutes the valid and binding agreement of the Buyer, enforceable against the Buyer in accordance with its terms.

 

(d)       The execution and delivery of this Agreement by the Buyer does not, and the performance of the terms of this Agreement by the Buyer will not, (i) require the Buyer to obtain the consent or approval of, or make any filing with or notification to, any governmental or regulatory authority, domestic or foreign, (ii) require the consent or approval of any other person pursuant to any material agreement, obligation or instrument binding on the Buyer or its properties and assets, (iii) conflict with or violate any organizational document or law, rule, regulation, order , judgment or decree applicable to the Buyer or by which any property or asset of the Buyer is bound, or (iv) violate any other agreement to which the Buyer is a party, including, without limitation, any voting agreement, stockholder’s agreement, partnership agreement, irrevocable proxy or voting trust.

 

(e)       Buyer understands that the Note and the common stock purchasable on conversion or exchange of the Note are not currently registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be sold except pursuant to an effective registration statement or pursuant to a duly available exemption from such registration requirement.

 

 3 

 

(f)       Buyer is an accredited investor (as defined in Rule 501 of Regulation D under the Securities Act) and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its purchase of the Note. Buyer is able to bear the economic risk of its investment in the Note for an indefinite period of time, and can afford a complete loss of such investment.

 

(g)       Buyer is purchasing the Note for its own account and not with a view toward distribution. Buyer will not engage in a sale of the Note (or the common stock purchasable on conversion or exchange of the Notes) in a transaction that would be in violation of the Securities Act.

 

(h)       Buyer acknowledges that it has made its own investigation regarding the Note and is not relying on any information provided by Seller. Buyer has reviewed such information relating to the Company’s operations, business and financial condition as it deems necessary to enable it to make an informed decision regarding the purchase of the Note.

 

(i)       The Note was not offered or sold to the Buyer by any form of general solicitation or general advertising.

 

The representations and warranties of the Buyer shall survive the purchase and sale of the Note.

 

6. Closing Conditions.

 

(a)       The obligations of the Buyer to consummate the Initial Closing and the Second Closing are subject to the satisfaction of the following conditions as of each of the Initial Closing Date and the Second Closing Date, as applicable: (a) the representation and warranties of the Seller set forth in Section 4 shall be true and correct in all material respects; (b) the Seller shall have performed or complied with in all material respects all of its obligations, agreements, and covenants required to be performed or complied with by the Seller under this Agreement at or prior to the applicable closing date; (c) with respect to the Initial Closing only, an opinion of counsel in a form acceptable to the Buyer has been issued to the Company’s transfer agent, to the effect that upon consummation of the transactions contemplated herein, shares of common stock of the Company may be issued without restriction to the Buyer in exchange for the Note pursuant to an exemption from the registration requirements of the Securities Act of 1933 under Section 3(a)(9) therein; and (d) the Company shall have a sufficient number of authorized shares of common stock of the Company to issue all Exchange Shares for the applicable Exchange (as such terms are defined in the Master Exchange Agreement) that will be duly authorized, validly issued, fully paid and non-assessable.

 

(b)       The obligations of the Seller to consummate the Initial Closing and the Second Closing are subject to the satisfaction of the following conditions as of each of the Initial Closing Date and the Second Closing Date, as applicable: (a) the representation and warranties of the Buyer set forth in Section 5 shall be true and correct in all material respects; and (b) the Buyer shall have performed or complied with in all material respects all of its obligations, agreements, and covenants required to be performed or complied with by the Buyer under this Agreement at or prior to the applicable closing date.

 

 4 

 

 

7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of all of which shall be deemed to be one and the same agreement.

 

8. Amendments; Assignment. This Agreement may not be amended or revised, except by a writing signed by all of the parties hereto. No party shall assign its rights hereunder without the written consent of the other parties.

 

9. Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral.

 

10. Construction. This Agreement shall be construed, applied and interpreted in accordance with the laws of the State of New York. Each of the parties hereto hereby irrevocably and unconditionally submits to the exclusive jurisdiction and venue of the state and federal courts having jurisdiction in New York County, New York, in connection with any suit, action or proceeding arising out of or relating to this Agreement.

 

11. Additional Actions. Each party agrees to cooperate and to execute any subsequent documents reasonably required to effectuate this Agreement and further to undertake and perform such other actions as may be reasonably required to fulfill the obligations and covenants contained herein.

 

[Remainder of Page Intentionally Left Blank]

 

 5 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year above written.

 

ESOUSA HOLDINGS LLC

 

By: /s/ Rachel Glicksman  
  Name:  Rachel Glicksman  
  Title:  Managing Member  

 

RESOURCE CAPITAL FUND V L.P.

 

By:  Resource Capital Associates V L.P., General Partner

By:  RCA V GP Ltd., General Partner

 

By: /s/ Catherine J. Boggs  
  Name:  Catherine J. Boggs  
  Title:   General Counsel  

 

 

 

[Signature Page to Note Purchase Agreement]

 

 

 

SCHEDULE A

 

 

Note

 

Noteholder

 

Principal Amount of Note

 

Interest owed as of the Initial Closing Date

 

  Resource Capital Fund V L.P. $8,000,000 Interest = $144,444.44

  

The “Purchase Price” for the Note is the sum of the Principal Amount plus Interest plus Backend fees (including expenses and make-whole amounts). Seller shall account for the amounts received from Buyer with the application of funds between interest, principal and fees mirroring the terms and conditions of the Loan and Security Agreement between Seller and the Company.

 

At the Initial Closing Date, a payment of $2,545,138.89 will be made by Buyer to Seller, consisting of $2,500,000 of principal of the Note, and $45,138.89 of accrued interest owing to the Initial Closing Date on the principal amount paid.

 

At the Second Closing Date, the payment by Buyer to Seller will consist of $5,500,000 of principal on the Note, plus accrued interest owing as of the Second Closing Date under the terms of the Loan Agreement.

 

 

EX-99.1 3 v454904_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

JOINT FILING AGREEMENT

 

The undersigned acknowledge and agree that the foregoing Amendment to Schedule 13D is filed on behalf of each of the undersigned and that all subsequent amendments to such statement shall be filed on behalf of each of the undersigned without the necessity of filing additional joint filing agreements. This agreement may be included as an exhibit to such joint filing.

 

 

Dated:  December 13, 2016.  
     
RCA V GP LTD.  
     
By: /s/ Sheri Croasdale  
  Name: Sheri Croasdale  
  Title: Chief Financial Officer  
     
RESOURCE CAPITAL ASSOCIATES V L.P.  
     
By:  RCA IV GP LTD., General Partner  
     
By: /s/ Sheri Croasdale  
  Name: Sheri Croasdale  
  Title: Chief Financial Officer  
     
     
RESOURCE CAPITAL FUND V L.P.  
     
By:  Resource Capital Associates V L.P., General Partner  
     
By:  RCA V GP Ltd., General Partner  
     
By: /s/ Sheri Croasdale  
  Name: Sheri Croasdale  
  Title: Chief Financial Officer  
     
     
RCF MANAGEMENT L.L.C.  
     
By: /s/ Sheri Croasdale  
  Name: Sheri Croasdale  
  Title: Chief Financial Officer