(TheNewswire)
TORONTO, CANADA – TheNewswire - December 31, 2024 – ONEnergy Inc. (“ONEnergy” or the "Company”) (NEX: OEG.H), today announced that the Company and Stephen J.J. Letwin have agreed to amend the Secured Grid Promissory Note (the “Secured Note”) effective December 31, 2024.
On May 26, 2023, the Company entered into the Secured Note with Stephen J.J. Letwin, a shareholder, creditor and the Chairman of the Board of Directors of the Company (the “Chairman”), as a preliminary step to filing a Division I proposal (the “Proposal”) pursuant to the Bankruptcy and Insolvency Act (Canada) (the “BIA”) with the intent of settling the Company’s outstanding unsecured creditor liabilities. On June 26, 2024, the Company implemented the Proposal.
The Secured Note is not convertible into securities of the Company, is secured by a first-ranking security over the Company’s assets,permits repayments and additional drawdowns and bears an annual interest rate at 10%. The Secured Note had a borrowing limit of $450,000 and a maturity date of December 31, 2023. The Secured Note is not part of the Proposal.
The Secured Note is a related party transaction, as that term is defined in section 1.1 of the MI 61-101 Policy.
Funds advanced under the Secured Note were used to fund the proposal trustee fees, legal fees of the Proposal proceedings, the Company’s working capital requirements during Proposal proceedings and will be used after the Company exits from the Proposal proceedings.
Effective December 31, 2023, the maturity date on the Secured Note was extended to December 31, 2024 and effective March 31, 2024, the borrowing limit was amended and increased to $650,000.
The Company and the Chairman agree to further amend the Secured Note, effective December 31, 2024, to increase the borrowing limit by $300,000 to $950,000 and to extend the maturity date to December 31, 2025. The amendment is necessary to provide the Company with adequate working capital as it exits from the Proposal proceedings and to pursue opportunities to complete a transaction.
The amendment to the Secured Note falls within the exemption provision set out in section 5.7(1)(f) of the MI 61-101 Policy, which provides an exemption from minority approval of related party transactions of this nature.
About ONEnergy Inc.
ONEnergy common shares are listed on the NEX board of the TSX Venture Exchange under the symbol “OEG.H”. Material information about ONEnergy can be found on SEDAR+ under the Company’s issuer profile at www.sedarplus.ca. ONEnergy's corporate website may be found at www.onenergyinc.com.
For additional information please contact:
Ray de Ocampo, Chief Financial Officer, irinfo@onenergyinc.com, +1 (647) 253-2534
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements in this news release include, but are not limited to, statements about the business and operations of the Company, the Proposal to its creditors and the Secured Note. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements and there can be no assurance that such expectations will prove to be correct. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except a required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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