YANGAROO Announces Closing of Non-Brokered, Non-Convertible Debenture Offering

YANGAROO (TSXV:YOO,OTCBB:YOOIF) announced the completion of the non-brokered debenture offering of secured, non-convertible debentures announced on February 9, 2017 for aggregate gross proceeds of $500,000.00.
As quoted in the press release:

As announced in the Initial Release, the net proceeds of the Offering will be used to repay a credit facility (the “Credit Facility”) of the Company, previously announced on December 14, 2015, with the balance to be used for working capital. The Credit Facility is in the amount of $500,000, with an outstanding balance of approximately $200,000.
The Debentures will mature three (3) years from the closing (the “Closing Date”) of the Offering (the “Maturity Date”) but the Company shall be entitled to repay the Principal Amount and all accrued interest in full, without penalty, at any time following the two (2) year anniversary of the Closing Date (“Early Repayment”), subject to the mutual approval of the Company and the holders of the Debentures. The Debentures will bear interest at a rate of 10% per annum, which will accrue and become due on the Maturity Date, subject to Early Repayment.
The subscribers to the Offering (the “Lenders”) consist of three (3) corporations, one of which is owned and/or controlled by a director of the Company, being Meteor Capital Inc. As a director of the Company had participated in the Offering, indirectly, this Offering constitutes a related party transaction under Multilateral Instrument 61-101 (“MI 61-101”) and TSX Venture Exchange Policy 5.9. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, based on a determination that the securities of the Company are listed on the TSX Venture Exchange only and that the fair market value of the Offering, insofar as it involves interested parties, does not exceed 25% of the market capitalization of the Company at the time the Offering was initially announced. The Company did not file a material change report 21 days prior to the closing of the Offering as the Offering had not yet been offered at such time. No new insiders have been created, nor has there been any change of control, as a result of the Offering.
The other two Lenders were Belweather Capital Partners Inc. and STS The Systems Installers, neither of which are insiders of the Company.

 
Click here for the full press release.