loanWow, those are horrible terms. 13.5% interest and...
The loan is subject to a closing fee of $800,000 to be paid in two instalments to the agent, for the rateable benefit of the lenders. A standby fee equal to 1 per cent will be paid annually by the company to the agent, for the account of the lenders, calculated and payable quarterly in arrears, of the difference between the daily revolver advances outstanding and the revolver limit during such quarter. An annual monitoring fee of $50,000 will be paid by the company to the agent, which fee will be paid in quarterly instalments beginning today and each three-month anniversary thereafter.
As partial consideration for entering into the loan agreement, the company issued 15,060,838 non-transferable warrants to the lenders to purchase up to an aggregate of 15,060,838 common shares of the company. Each warrant has an exercise price equal to 14 cents and is exercisable for five years.
The lenders are not non-arm's-length parties of the company as defined pursuant to the policies of the TSX Venture Exchange. The lenders do not own nor have any beneficial ownership of any securities of the company other than the warrants granted pursuant to the loan agreement.