The Medipattern Corporation V.MKI

Debt financing matures June 30, 2013

[RE38]

What the....what was the point of that? Why finance with debt when they have to pay this all back in 6 months? Are they expecting a huge ramp up in revenue or do they want to announce default and have the debtholders take a lien over the assets by then, as per the agreement? If they're planning to finance with capital by then they better hurry up because the stock price is 6 cents and the minimum financing you can do is at 5, unless they want to do a reverse split which opens a whole new can of worms (have to get it approved at the AGM).

 

 

The Medipattern Corporation ("Medipattern" or the "Company") (TSX VENTURE:MKI), is pleased to announce that it has closed the first tranche of financing under the term debt facility (the "Facility") arranged on November 7, 2012.

Medipattern issued $154,000 of secured notes under the Facility (the "Notes"). The Notes mature on June 30, 2013, and will bear interest at the rate of 6% per annum, calculated monthly and payable at maturity. The Notes are secured by a general security agreement over all the assets of the Company, in priority to all existing security interests granted by the Company. The Notes are subject to certain redemption and repayment rights. Medipattern and its Board have agreed to appoint up to two (2) representatives as directors to the Company's Board as designated by the holders of the notes. The Notes are subject to a four month and one day resale restriction.