Insiders investing big time in SCG
Selectcore arranges $2.52-million debt facility
2013-02-06 10:07 ET - News Release
An anonymous director reports
SELECTCORE SECURES MORE FAVOURABLE FINANCING FACILITY
SelectCore Ltd. has secured a more favourable debt financing facility, and the proceeds have been used to retire the existing debt facility with Windsor Bancorp LP in advance and without penalty.
The new $2,525,000 senior secured loan facility with 1889072 Ontario Ltd. (comprising arm's-length and non-arm's-length parties) matures Feb. 4, 2015, and may be extended for an additional one-year term. The loan bears an interest rate equal to prime plus 7 per cent per annum, and will be secured by a general security over the assets of the company and each subsidiary thereof, as well as a securities pledge over the securities of each subsidiary of the company.
Certain commitment and management and loan maintenance fees are payable to the lender group in connection with the loan. In addition, the company issued to the lender group 2,525,000 warrants, each exercisable into one common share of the company at 15 cents per share for a period matching the maturity of the loan.
The corporation has the option to repay any or all of the outstanding principal at any time without penalty.
Certain officers, directors and employees of the corporation, namely Martin Bernholtz, Mike Rohrer, Keith McKenzie and Ryan Deslippe, formed part of the lender group and advanced a total of $525,000 under the loan.