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CALGARY, AB and TORONTO, Nov. 29, 2023 /CNW/ - Magnetic North Acquisition Corp. (TSXV: MNC) (TSXV: MNC.PR.A) ("Magnetic North" or the "Company") is pleased to announce that it has entered into a commitment letter (the "Credit Agreement") with a Canadian Financial Institution (the "Lender"). Under the Credit Agreement, the Lender has made available to the Company a non-revolving demand facility in the principal amount of US$10,000,000. The facility bears interest at U.S. prime plus 1.5% per annum and will be used by the Company for investment purposes.
The Company also received a non-interest bearing loan in the principal amount of $250,000 from an arm's length shareholder of the Company to be used by the Company for general corporate purposes. Subject to the approval of the TSX Venture Exchange, the Company will grant to the shareholder an aggregate of 550,000 warrants ("Warrants") as consideration for providing the loan and for providing the letter of credit in connection with the Credit Agreement. Each Warrant will entitle the holder to purchase one Series A preferred share in the capital of the Company at an exercise price equal to $7.50 per share for period of 12 months from the date of issuance.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North common shares and preferred shares trade on the TSX Venture Exchange under the stock symbol MNC and MNC.PR.A, respectively. Magnetic North is a TSX Venture "2021 TSX Venture 50" recipient. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North's securities filings can also be accessed at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Certain statements in this news release are "forward-looking statements", which reflect current expectations of the management of Magnetic North regarding future events or Magnetic North's future performance. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Magnetic North believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Magnetic North assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Magnetic North and its securities can be found in the disclosure documents filed by Magnetic North with the securities regulatory authorities, available at www.sedar.com.
For further information:
Graeme, Investor Relations, 403-451-0939, graeme@colwellcapital.com; Stephen McCormick, VP, Capital Markets, 403-451-0939, stephen@magneticnac.com