The $9.5 million 10% senior secured convertible bond financing deal comes after months of negotiations between the two parties.
"Our new financing arrangement with Marret Asset Management is designed to ensure that Cline can meet its obligations over the short to medium term while it continues discussions with a number of significant investment groups,” Cline executive chairman Mark Haywood stated.
Haywood confirmed last month that Cline would delist from the Toronto Stock Exchange on June 21 and just days later said it was unable to make its June 17 interest payment of about $C3.2 million ($US3 million) on an existing financial deal.
“[We have] agreed with the trustee to forbear from taking action under the trust indenture until the end of this month while an alternative financing arrangement is negotiated with Marret Asset Management,” he said at the time.
On Tuesday Cline said the June interest payment had been satisfied through the issuance of convertible bonds.
The company also opted to postpone its annual general meeting until August 15, with specifics on time and location forthcoming.