Amcomri Entertainment Announces Extension to Existing Credit Facilities

VANCOUVER, British Columbia, April 09, 2024 (GLOBE NEWSWIRE) -- Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (Cboe CA: AMEN) (Frankfurt: 25YO) (OTC: AMNNF) is pleased to announce that the Company has amended and restated its existing credit facilities.

The Company amended and restated the agreements governing the Company’s US$1.25 million credit facility and US$3.2 million working capital facility to extend the term of the loans to June 30, 2024. Further, and effective as of January 1, 2024, the interest rates under the loans have been set at fifteen percent (15%) per annum and the amounts owing under each loan have been converted from United States Dollars to British Pounds at a conversion rate of US$1.00 to £0.785024. Amounts drawn under the credit facilities remain repayable by the Company at any time without penalty.

The lender, Oranmore Limited, is an entity beneficially owned and controlled by the Company’s Chairman, Paul McGowan. The amended of the agreements governing the loan and credit facility constitutes a "related party transaction", as such term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") because the lender is an entity beneficially owned and controlled by the Company’s Chairman, Paul McGowan.

Notwithstanding the foregoing, the Company is exempt from the formal valuation requirement per sections 5.5(a) of MI 61-101, as neither the fair market value of the subject matter of the transactions, nor the fair market value of the consideration for those transactions, insofar as it involves the interested parties, exceeds 25% percent of the Company’s market capitalization, and the Company confirms that it has not obtained any valuations relevant to the transactions in the 24 months preceding the entry into the amendments. In addition, the Company is exempt from the requirement to obtain minority shareholder approval per section 5.7(1)(a) and Section 5.7(1)(f) of MI 61-101, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeds 25% percent of the Company’s market capitalization and the transactions are amendments that were obtained by the Company from a related party on reasonable commercial terms that are not less advantageous to the Company than if the loans were obtained from a person dealing at arm’s length with the Company, and the loans, or each advance under the credit facilities, as the case may be, are not convertible into equity.