News
Stria Lithium amends loan
2021-04-01 11:12 ET - News Release
Ms. Judith Mazvihwa-MacLean reports
STRIA LITHIUM INC. ANNOUNCES AMENDMENT TO PREVIOUSLY ANNOUNCED NON-ARM'S LENGTH LOAN
Further to its news release issued March 17, 2021, Stria Lithium Inc. has amended the loan referenced in the same March 17, 2021, news release.
The original loan was made on May 25, 2020, in the amount of $500,000 by way of secured promissory note to a non-arm's-length lender. No interest is payable on the principal and repayment is due on May 25, 2021.
The terms of the loan have been amended to affirm the parties' original intention that the loan is an unsecured debt of the company. The note was amended to remove any reference to security being granted by the company to the lender. The company and the lender intend on converting the debt to shares, subject to the approval of the TSX Venture Exchange, as disclosed on March 17, 2021.
The loan was a related party transaction for purposes of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The transaction is exempt from the valuation and minority approval requirements of MI 61-101 in accordance with sections 5.5(b) and 5.7(f) as the company is not listed on a specified market and the commercial terms of the loan are reasonable and not less advantageous to the company than if the loan was obtained from a person dealing at arm's length. The company did not file a material change report more than 21 days before the expected closing of the loan, as required by MI 61-101, since the details of the loan were not settled until shortly prior to the closing of the transaction and the company wished to close on an expedited basis for sound business reasons.