RE:RE:RE:RE:RE:RE:RE:RE:short interest plummets by 5000 shares to 2,192,000... yawnterms of the loan to George:
The loan bears interest at Canadian chartered bank prime less 5/8th of a percent and has no set repayment terms but is payable on demand. Security under the debenture is over all of the Company’s assets and is subordinated to any and all claims in favour of the syndicate of senior lenders providing credit facilities to the Company. The Company’s bank agreement requires that the above loan can only be repaid should the Company have sufficient available borrowing limits under the Company’s credit facility. Interest paid on this loan for 2017 was $274,000 (December 31, 2016 – $249,000). This loan results in a substantial benefit to Bonterra as the interest paid to the CEO by Bonterra is lower than bank interest.
terms of the subordinated note to a private investort:
it bears interest at five percent and is repayable after thirty days’ written notice by either party. Security consists of a floating demand debenture over all of the Company’s assets and is subordinated to any and all claims in favor of the syndicate of senior lenders providing credit facilities to the Company. Interest paid on the subordinated promissory note during the year was $625,000 (December 31, 2016 – $540,000). On February 9, 2018 the Company repaid $2,500,000.
If either of these loans had conversion features, the details would be disclosed in the notes to the financial statements.