News Release: $5.25M Loan Offer Maple Leaf Accepts Loan Offer from Silver Arch Capital Partners
2018-10-16 08:30 ET - News Release
CALGARY, Alberta, Oct. 16, 2018 (GLOBE NEWSWIRE) -- Maple Leaf Green World Inc. (“Maple Leaf” or the “Company”) (NEO: MGW, OTCQX: MGWFF) has accepted a loan offer from Silver Arch Capital Partners (the “Lender”) providing for a maximum amount of $5,250,000 (the “Loan”). Proceeds from the Loan will be used for the completion of construction of real property and improvements for the Company’s cannabis cultivation facility located in Telkwa, British Columbia (the “Telkwa Facility”). The maximum initial draw of the Loan is $2,875,000. Silver Arch Capital Partners is a private lender in the commercial real estate market based in Hackensack, N.J., U.S.A. website: www.silverarchcp.com.
Collateral for the Loan consists of the real property and improvements thereon located at the Telkwa Facility. The Loan shall be evidenced by a full set of loan documentation, first mortgage or deed of trust covering the Telkwa Facility, granting the Lender a first priority security interest in the Telkwa Facility.
The interest rate for the term of the Loan shall be equal to the greater of (i) twelve percent (12%); and (ii) the sum of (a) the Wall Street Journal prime rate, plus (b) 700 basis points. The Loan term is for 18 months, interest only, and there may be two six-month extensions, upon payment of 1% of the Loan amount per extension and provided the Loan is not in default. The origination fee is three percent (3%) of the Loan amount. In the event that the Loan is not advanced or if the Company fails to close the Loan, the Company has agreed to pay the Lender a break-up fee of 1% of the Loan amount in the event the Company accepts the Loan offer and the Company fails to close the Loan with the Lender.
The Loan is expected to be advanced on or about November 9, 2018, or such other date as may be determined by the Lender. There can be no guarantee that the maximum amount of the Loan will be advanced or at all by the Lender as closing shall also be subject to complete and acceptable due diligence and customary loan documentation. Further information regarding closing of the Loan will be released in due course.