$750,000 loan for "general working capital"What are they hiding...just spell it out....if you read the release again it says to go check for more detail in SEDAR. This stock is not looking or sounding too snappy anymore!!
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or "the Company") announces today the receipt of a loan in the principal amount of $750,000 from a related party (the “Loan”). The Company intends to use the net proceeds of the Loan for general working capital purposes.
The Loan is unsecured, subordinated to the Company’s senior lender, bears interest at prime plus 1%, and is repayable within 120 business days of being advanced.
The Loan, by reason of being advanced by a related party to the Company, is a related party transaction within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority approval requirements, as the fair market value of the Loan does not exceed 25% of the Company’s market capitalization or $2.5 million. Further details will be provided in the Company's material change report to be filed on SEDAR.