we did need a quick injection of cash, now we have it
Cascadero obtains $200,000 loan from Springhill
2020-07-07 18:48 ET - News Release
Mr. Christopher Ecclestone reports
CASCADERO OBTAINS LOAN FROM AND ISSUES BONUS WARRANT TO RELATED PARTY
Cascadero Copper Corp. has obtained a loan of $200,000 from Lorne Harder, chief financial officer, corporate secretary and a director of Cascadero, through his wholly owned company, Springhill Investments Ltd. The Loan is non-interest bearing, is payable at the end of one year, may be repaid at any time without penalty and is unsecured. Cascadero expects to use the Loan proceeds to primarily pay its arm's length creditors and for general working capital.
As a condition of the Loan, Cascadero will, subject to TSX Venture Exchange acceptance, issue to Springhill 8,000,000 warrants, each warrant is exercisable for one common share of Cascadero at an exercise price of $0.025 per common share (the "Bonus Warrants"). The Bonus Warrants will expire one year from issuance. The Bonus Warrants will be subject to a hold period of four months and a day from the date of issuance. The issuance of the Bonus Warrants will be exempt from prospectus requirements based on the exemption set out under Section 2.5 of National Instrument 45-106 - Prospectus Exemptions as Mr. Harder is a director and executive officer of Cascadero.
Due to Mr. Harder's relationship with Cascadero, the Loan transaction is deemed a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Loan is exempt from requiring a formal valuation and minority approval in accordance with, respectively, sections 5.5(b) and 5.7(a) as Cascadero is listed on the TSX Venture Exchange and the fair market value of the Loan transaction does not exceed 25% of Cascadero's market capitalization. There is less than 21 days between the Loan and the filing date of the related material change report due to Cascadero's need for the Loan proceeds to pay creditors.