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     352  0 Kommentare KGIC Inc. Announces Proposed $9.725M Loan Facility

    TORONTO, ONTARIO--(Marketwired - Oct. 17, 2016) - KGIC Inc. ("KGIC" or the "Company") (TSX VENTURE:LRN) is pleased to announce that it has received a firm commitment from a third party lender for a proposed secured loan in the aggregate amount of up to $9.725 million (the "Loan"). Funding of the Loan is conditional on the Company completing its previously announced capital restructuring and debt settlement plan (which is more fully described in the news release of the Company dated September 26, 2016) on or before October 31, 2016 (the "Debt Settlement Plan").

    The Loan will be comprised of a $7.5M short-term loan (the "Term Facility") that will be used to retire the debt that remains owing to the Company's senior lender, Bank of Montreal, following the implementation of the Debt Settlement Plan, with the remainder of the Loan to be used for working capital purposes (the "Working Capital Facility"). The Term Facility will bear interest at a rate of 12% per annum and will be repayable 6 months following the date of advance.

    The Working Capital Facility will bear interest at a rate of 5% per annum and will be repayable 12 months following the date of advance. In addition, the lender will have the option to convert the balance owing under the Working Capital Facility into units of the Company at a pre-consolidation conversion price of $0.02 per common share at any time prior to the Maturity Date, subject to the limitation noted below, with each unit being comprised of one common share of the Company and one common share purchase warrant exercisable for a period of 24 months from the date of issuance at an exercise price of $0.05 per common share.

    The Company intends to apply to the TSX Venture Exchange ("TSXV") for a "discretionary waiver" of the TSXV's minimum $0.05 pricing requirement (the "Waiver") in connection with the conversion of any portion of the Working Capital Facility. As part of the Waiver application, the Company will seek approval from the TSXV to complete a consolidation of its outstanding common shares in such ratio as would result in a "post-consolidation" conversion price equal to or greater than $0.05 per common share (a "Consolidation") on or before the date that is six months following the closing date of the Loan (the "Consolidation Deadline"). It will be a condition of the wavier that the outstanding balance under the Working Capital Facility may not be converted into common shares unless a Consolidation is completed on or before the Consolidation Deadline. If a Consolidation is not completed on or before the Consolidation Deadline, the conversion price would be deemed to be amended to $0.05 per common share in accordance with the TSXV's minimum pricing requirements and the interest rate on the Working Capital Facility would be deemed to be increased to 12.5% per annum, retroactive from the date of completion of the Loan.

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    KGIC Inc. Announces Proposed $9.725M Loan Facility TORONTO, ONTARIO--(Marketwired - Oct. 17, 2016) - KGIC Inc. ("KGIC" or the "Company") (TSX VENTURE:LRN) is pleased to announce that it has received a firm commitment from a third party lender for a proposed secured loan in the aggregate amount of up …