BusinessWire Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or "the Company") announces today the receipt of a loan in the principal amount of $750,000 from a related party (the "Loan"). The Company intends to use the net proceeds of the Loan for general working capital purposes.
The Loan is unsecured, subordinated to the Company's senior lender, bears interest at prime plus 1%, and is repayable within 120 business days of being advanced.
The Loan, by reason of being advanced by a related party to the Company, is a related party transaction within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority approval requirements, as the fair market value of the Loan does not exceed 25% of the Company's market capitalization or $2.5 million. Further details will be provided in the Company's material change report to be filed on SEDAR.
DSU Issuance.
The Company also announces that it has issued deferred share units ("DSUs") to its directors as of May 29, 2023. Under the DSU plan of the Company, an aggregate of 285,980 DSUs have been issued by the Company to non-executive directors in settlement of $105,812.50 of deferred directors' compensation. The DSUs are to be settled in common shares of the Company when the director retires from all positions with the Company.