Azabache Announces Closing of Convertible Loan FinancingThis loan was previously announced and is from an insider at 8%. THe insider has to have confidence in us to loan us some working capital.
Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that it has closed its previously announced non-brokered financing (the "Debt Offering") of a $1,000,000 convertible, unsecured interest-bearing loan (the "Convertible Loan") with an insider of the Corporation.
The Convertible Loan will bear interest at a rate of 8% per annum, calculated and payable together with the principal of the Convertible Loan upon the maturity date. The term of the Convertible Loan shall be one (1) year, with the Company having a right to prepayment at any time. At maturity, the Convertible Loan may be convertible into Common Shares of the Company at a conversion price of $0.16 per share. Any Common Shares issued upon conversion of the Convertible Loan will be subject to a four month hold period from the date of issue.
The Debt Offering is subject to the receipt of the final approval of the TSX Venture Exchange Inc.
The Company intends to use the proceeds from the Debt Offering for general working capital and general corporate purposes.
For further information on Azabache please visit the Company's website at www.azaenergy.com.
Read more at https://www.stockhouse.com/news/press-releases/2014/09/19/azabache-announces-closing-of-convertible-loan-financing#7yEvqebvF40U5fbo.99