Quantum International Income Corp. Announces New Credit Facility

TORONTO, ONTARIO--(Marketwired - Feb. 10, 2016) - Quantum International Income Corp. (the "Corporation") (TSX VENTURE:QIC) (TSX:VENTURE:QIC.U) announces today that its wholly-owned subsidiary Quantum US Healthcare Corp. (the "Borrower"), has, together with the Corporation, entered into a definitive facility agreement with a syndicate of lenders (the "Facility"), pursuant to which the Borrower is entitled to borrow up to an aggregate of $825,000 (the "Proceeds") in consideration for the issuance to such lenders of secured senior exchangeable notes of the Borrower (the "Notes"). Funds will be advanced to the Borrower under the Facility in regular monthly installments commencing February 15, 2016, save for an initial draw of $165,000 which is expected to be made available to the Corporation imminently. The funds available to the Corporation under the Facility are expected to be used for general corporate and working capital purposes. Additional loans in the aggregate principal amount of up to $5,175,000 may be made available to the Corporation by the lenders pursuant to the Facility, but only on a discretionary basis at the option of the lenders, to fund potential acquisitions of the Corporation.

Advances to the Borrower under the Facility will be evidenced by the issuance of Notes of the Borrower in like principal amounts, which Notes will bear interest at 15% per annum, payable at maturity on January 31, 2017. Each Note will be exchangeable into common shares of the Corporation at the option of the holding lender thereof, at an exchange price that will be determined at the time of issuance of such Note and will be based on the prevailing market price for the Corporation's common shares at the time of issuance, subject to customary adjustments and subject in all cases to the minimum pricing rules of the TSX Venture Exchange. The Borrower and the Corporation will also have the right to force exchange of any or all outstanding Notes concurrently with, or any time following, the closing by the Corporation, directly or indirectly, of an acquisition that meets certain criteria specified in the agreement governing the Facility. Upon the exchange of any Notes, either at the option of the holding lender thereof or the option of the Borrower and the Corporation upon completion of a qualifying acquisition, all accrued and unpaid interest shall become due and payable to the applicable lender, which accrued and unpaid interest may be satisfied by the issuance of additional common shares of the Corporation, based on the prevailing market price for the Corporation's common shares at the time of exchange.