$600,000 LOAN NEWS I'll break down each part of news
Premier Diversified Holdings Inc. has entered into certain loan agreements with MPIC Fund I LP for secured loans in the aggregate principal amount of up to $610,000 (U.S.). The loans mature on July 15, 2021, Sept. 1, 2021, Oct. 7, 2021, Oct. 22, 2021, and Nov. 22, 2021, and bear interest at a rate of 6 per cent per annum. The loans are secured with all of the present and after-acquired property of the company and rank equally in priority with all of the loans previously made to the company by MPIC.
The company is not issuing any securities, or paying any bonus, commission or finders' fees on the loans. The loans are repayable at any time without penalty. The company expects to repay the financing upon receiving funds from some of its other investments.
Related party transaction disclosure
As MPIC is a control person of Premier, the loan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security holders in Special Transactions. The loan has been determined to be exempt from the requirements to obtain a formal valuation or minority shareholder approval based on sections 5.5(b) and 5.7(1)(f) of MI 61-101.
Premier does not have securities listed or quoted on any of the specified markets listed in Section 5.5(b) of MI 61-101. Premier is relying on the exemption from minority shareholder approval in 5.7(1)(f) of MI 61-101 as the loan was obtained by Premier from MPIC on reasonable commercial terms that are not less advantageous to Premier than if the loans had been obtained from a person dealing at arm's length with Premier. Further, the loans are not convertible, directly or indirectly, into equity or voting securities of Premier or a subsidiary entity of the issuer, or otherwise participating in nature, or repayable as to principal or interest, directly or indirectly, in equity or voting securities of Premier or a subsidiary entity of the issuer.
The loans are subject to review and acceptance by the TSX Venture Exchange.
Amended loan agreements with MPIC Fund I.
Premier entered into a loan agreement with MPIC on April 25, 2019, with a principal amount of $200,000 (U.S.). The original maturity date of the loan was April 27, 2020. The maturity date was extended to July 27, 2021. All other terms of the loan remain the same.
Premier entered into a loan agreement with MPIC on July 10, 2019, with a principal amount of $200,000 (U.S.). This loan matured on July 10, 2020. MPIC and Premier agreed to extend the maturity date by 12 months to July 10, 2021.
Premier entered into a loan agreement with MPIC on Sept. 4, 2019, with a principal amount of $300,000 (U.S.). This loan matured on Sept. 4, 2020. MPIC and Premier agreed to extend the maturity date by 12 months to Sept. 6, 2021.
Premier entered into a loan agreement with MPIC on Nov. 7, 2019, with a principal amount of $300,000 (U.S.). This loan matured on Nov. 7, 2020. MPIC and Premier agreed to extend the maturity date by 12 months to Nov. 8, 2021.