What is this bridge loan all about??? What securities are they considering in disposing of????
For cash management purposes and to avoid the administrative, tax and foreign exchange costs which may arise from an immediate disposition of its marketable securities, McVicar has secured a bridge financing facility from Dr. Gang Chai, the Chief Executive Officer of McVicar, and an associate of Dr. Chai, for a principal amount of up to CAD $1.4 million with interest at the prime rate of interest charged from time to time by the Bank of Montreal in Toronto on Canadian dollar loans to is most creditworthy customers plus one percent (1%) payable monthly in arrears on the balance outstanding from time to time. If the loan is not repaid by June 29, 2012, additional interest at the rate of 2% per month, calculated daily will be payable. The bridge financing facility is secured by a promissory note having a principal amount of CAD $1.4 million and maturing on June 29, 2012. This term will provide ample time for McVicar to repay the loan in an orderly manner and consequently will have no effect in the transition of McVicar business and affairs