MONTREAL, Dec. 4, 2014 /CNW Telbec/ - Knowlton Capital Inc. (TSXV: KWC.H) is pleased to announce that it has entered into a secured loan agreement with Mogul Ventures Corp. providing for a loan from Knowlton to Mogul in a principal amount of CDN$50,000. The loan agreement provides that the loan will be disbursed in two equal tranches of CDN$25,000, the first tranche of which was disbursed on the date of the loan agreement, with the second tranche to be disbursed upon receipt of applicable regulatory approvals, including that of the TSX Venture Exchange.
Mogul will use the loan exclusively for the payment of expenses in connection with the previously-announced acquisition by Knowlton of all of the issued and outstanding shares of Mogul, which will constitute a reverse takeover of Knowlton.
The loan will bear interest at an annual rate of 5%, and will be fully repayable by Mogul to Knowlton one year after the date of the loan agreement. Mogul may prepay the loan, in whole or in part, at any time and from time to time, without penalty. The loan is secured under a general security agreement over all of Mogul's present and future personal property.
Notice on forward-looking statements:
This release includes forward-looking statements regarding Knowlton, Mogul and their respective businesses. Such statements are based on the current expectations and views of future events of the management of each entity, and are based on assumptions and subject to risks and uncertainties. Although management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, including completion of the reverse takeover and related private placement, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Knowlton and Mogul, including risks regarding the mining industry, market conditions, economic factors, the ability of Mogul management to manage and operate the business, and the equity markets generally. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and neither Knowlton nor Mogul undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or for dissemination in the United States
SOURCE Knowlton Capital
Rafi Hazan, Chief Financial Officer, 514-397-7483Copyright CNW Group 2014