Royal Energy Resources, Inc. Enters into a Second Amendment to Secured Promissory Note with Cedarview Opportunities Master Fund, L.P
January 15, 2020 at 10:07 am EST
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On January 6, 2020, effective as of December 31, 2019, Royal Energy Resources, Inc. entered into a Second Amendment to Secured Promissory Note with Cedarview Opportunities Master Fund, L.P. The Amendment relates to the secured promissory note executed between the company and Cedarview as of May 31, 2017 in the original principal amount of $2,500,000, with a current principal balance of $1,500,000. The Second Amendment extends the maturity date to May 31, 2021, and increases the interest rate on the Note to 15% for the period from March 1, 2020 to the maturity date. The Second Amendment also pledged as additional collateral a royalty interest owned by the Company, and requires that the Company pay Cedarview 75% of all proceeds from the royalty agreement in excess of $175,000 in any calendar year as a prepayment of the Note. All other terms, provisions, conditions and definitions as set out in the Note remain in full force and effect, including without limitation all security and collateral required by the Note.
Royal Energy Resources, Inc. is an energy company, which focuses on coal and energy related assets and activities, including energy infrastructure investments. The Company has a geographically diverse asset base with coal reserves located in Central Appalachia, Northern Appalachia, the Illinois Basin and the Western Bituminous region. The Company's segments consist of Central Appalachia, which includes surface and underground mines located in Eastern Kentucky and Southern West Virginia; Northern Appalachia, which includes surface and underground mines located in Ohio; Rhino Western, which includes an underground mine located in the Western Bituminous region in Utah; Illinois Basin, which includes an underground mine in western Kentucky, and Other, which includes its ancillary businesses, and oil and natural gas investments. The Company produces and markets coal from surface and underground mines in Kentucky, West Virginia, Ohio and Utah.