Newstrike Capital Enters C$2,000,000 Loan Agreement With Shareholders
Newstrike Capital Inc. (TSXV:NES) reported that it has entered into a C$2,000,000 loan agreement with Zebra Holdings and Investments S.à.r.l. and Lorito Holdings S.à.r.l., both shareholders of the Company.
As quoted in the press release:
Newstrike Capital Inc. (TSX-V:NES) (“Newstrike” or the “Company”) announces that it has entered into a loan agreement (the “Debenture”) in the principal amount of up to C$2,000,000 (the “Principal Amount”) with two shareholders of the Company, Zebra Holdings and Investments S.à.r.l. (“Zebra”) and Lorito Holdings S.à.r.l. (“Lorito”, collectively with Zebra, the “Lenders”). The Company intends to use the proceeds from the loan for general corporate purposes.
The Debenture will mature on the date that is the earlier of: (i) the closing of the arrangement (the “Arrangement”) contemplated by the Arrangement Agreement (the “Arrangement Agreement”) dated February 16, 2015 between the Company and Timmins Gold Corp. (“Timmins”); and (ii) August 31, 2015 (the “Maturity Date”). The Debenture will bear interest at a rate of 5.0% per annum commencing on the Maturity Date or upon the occurrence of an Event of Default (as defined in the Debenture). Interest at such rate shall accrue and be calculated daily and shall be payable to the Lenders semi-annually.
As consideration for the loan, the Company will issue to the Lenders, subject to TSX Venture Exchange (“TSXV”) approval: (i) an aggregate of 50,000 common shares (the “Commitment Shares”), immediately upon approval of the TSXV; and (ii) 250 common shares per month for each C$100,000 of the Principal Amount outstanding under the Debenture up to the Maturity Date (the “Additional Shares”, and collectively with the Commitment Shares, the “Commission Shares”). The Commission Shares will be subject to a statutory hold period expiring four months following their issuance.
The Lenders are “insiders” (as defined in applicable securities laws) of the Company. Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, the issuance of the Debenture is considered a “related party transaction”. The issuance of the Debenture is exempt from the requirements to obtain a formal valuation or minority shareholder approval as the fair market value of the loan represents less than 25% of the Company’s market capitalization.
Click here to read the Newstrike Capital Inc. (TSXV:NES) press release
Click here to see the Newstrike Capital Inc. (TSXV:NES) profile.
MARKETS
COMMODITIES
Commodities | |||
---|---|---|---|
Gold | 1846.53 | +0.13 | |
Silver | 21.75 | +0.03 | |
Copper | 4.30 | +0.02 | |
Palladium | 1968.65 | +11.53 | |
Platinum | 957.67 | +3.19 | |
Oil | 110.35 | -1.86 | |
Heating Oil | 3.62 | -0.05 | |
Natural Gas | 8.06 | -0.25 |
DOWNLOAD FREE REPORTS
BROWSE COMPANIES BY SECTOR
- Agriculture Investing
- Phosphate Investing
- Potash Investing
- Base Metals Investing
- Copper Investing
- Iron Investing
- Lead Investing
- Nickel Investing
- Zinc Investing
- Battery Metals Investing
- Cobalt Investing
- Graphite Investing
- Lithium Investing
- Manganese Investing
- Vanadium Investing
- Critical Metals Investing
- Magnesium Investing
- Rare Earth Investing
- Scandium Investing
- Tantalum Investing
- Tellurium Investing
- Tungsten Investing
- Energy Investing
- Oil and Gas Investing
- Uranium Investing
- Gem Investing
- Diamond Investing
- Industrial Metals Investing
- Aluminum Investing
- Chromium Investing
- Coal Investing
- Molybdenum Investing
- Tin Investing
- Precious Metals Investing
- Gold Investing
- Palladium Investing
- Platinum Investing
- Silver Investing
- 3D Printing Investing
- Bitcoin Investing
- Blockchain Investing
- Cleantech Investing
- Cloud Investing
- Cryptocurrencies
- Data Investing
- Emerging Tech Investing
- Artificial Intelligence Investing
- Mobile Investing
- Robotics Investing
- Fintech Investing
- Gaming Investing
- Esports Investing
- Nanoscience Investing
- Graphene Investing
- Nanotech Investing
- Security Investing
Featured stocks
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.