Seair Announces Closing Financing and Grants Security Interest

Seair (TSXV:SDS) has announced that it has entered into an agreement with 1979927 Alberta pursuant to which the Lender has agreed to loan Seair the aggregate principal sum of $215,125.
As quoted in the press release:

The Company anticipates using the proceeds from the Loan for working capital purposes, provided, however that the Loan shall not, without prior written consent of the Lender, be used for payment of any previously accrued amounts outstanding to any employee of the Company.  The Loan bears interest at a rate of: (i) 17% per year compounded monthly in arrears from the date of each advance and including the Maturity Date (as hereinafter defined) and (ii) 22% per year compounded monthly in arrears from the day after the Maturity Date until the Loan and all interest thereon have been repaid in full.  The Loan matures on the earlier of: (i) February 21, 2017, and (ii) the issuance of a notice of an event of default by the Lender to Seair that has not been cured within ten business days (the “Maturity Date“).
In connection with the Loan, the Company has granted the Lender a security interest in all of the Company’s present and after-acquired personal property, subject to certain permitted encumbrances and ranking pari passu with certain other creditors of the Company.

Click here for the full text release.