Vancouver, British Columbia--(Newsfile Corp. - July 22, 2022) - PreveCeutical Medical Inc. (CSE: PREV) (OTCQB: PRVCF) (FSE: 18H) (the "Company" or "PreveCeutical"), announces that it has entered into a $3 million credit facility agreement with the Company's Chief Executive Officer and Chair, Stephen Van Deventer, and the Company's former President and director, Kimberly Van Deventer (collectively, the "Lenders").
Effective July 18, 2022, the Company entered into a convertible credit facility agreement with the Lenders in the aggregate principal amount of $3 million (the "Agreement") with a simple annual interest of 10%, and any outstanding principal and accrued interest being convertible into fully paid and non-assessable common shares in the capital of the Company at a conversion price of $0.025 per share in accordance with the terms of the Agreement.
Pursuant to the Agreement, the Lenders have consolidated certain outstanding principal and accrued interest for existing credit facilities with the Company, and have transferred an aggregate of $2,448,785.75 to the Agreement. These credit facilities agreements were terminated effective July 18, 2022. The Lenders have also transferred certain short-term advances totalling $105,307.15 and amounts payable to Lenders in the amount of $346,055.82 to the Agreement.
Advances by the Lenders to the Company for the principal balance available under the Agreement will be used by the Company for product development, general corporate, and working capital purposes.
As the Lenders are current and/or former directors and executive officers of the Company (collectively, the "Related Parties"), the Agreement constitutes a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for an exemption from the formal valuation and minority shareholder approval requirements, respectively, of MI 61-101, as, neither the fair market value of the Agreement, nor the fair market value of the consideration for the Agreement, as applicable, exceeded 25% of the Company's market capitalization.
About PreveCeutical
PreveCeutical is a health sciences company that develops innovative options for preventive and curative therapies utilizing organic and nature identical products. The Company aims to be a leader in the preventive health sciences sector.
With the completion of three of its research programs, the Company is actively working on the development, clinical trials, and commercialization of its products. It has filed a number of provisional patent applications to protect the intellectual property from its research programs.
For more information about PreveCeutical, please visit our website www.PreveCeutical.com or follow us on Twitter and Facebook.
On behalf of the Board of Directors of PreveCeutical
Stephen Van Deventer, Chairman and Chief Executive Officer
For further information, please contact:
Stephen Van Deventer: +1 604 306 9669
Or Investor Relations ir@preveceutical.com