Zaio Corp Enters Non-Binding Term Sheet with StableView Asset Management

Zaio Corp. (TSXV:ZAO) and StableView Asset Management have entered into a non-binding term agreement.
According to the press release:

In accordance with the term sheet, StableView, as lender representative, will act to arrange a secured, subordinated non-amortizing debt facility of up to $4-million on a best-efforts basis. As part of the financing, Zaio will also issue three common share purchase warrants for each $1 principal amount loaned under the facility. Each warrant shall be exercisable at 11 cents per common share for a period of 36 months from the date of issuance. The financing is subject to a minimum principle amount of $1.5-million, and will be utilized for general corporate purposes.
The facility will bear interest at a rate of 15 per cent per annum, calculated and payable quarterly, and has a maturity date of 24 months from the initial advance date, subject to further extension by the lenders. Under the terms of the financing, upon the initial drawdown on the facility, Zaio will pay through the debt facility $50,000 (to be added to the facility) and issue 1,666,667 common shares of Zaio. In addition, the lender representative will have the right to nominate up to four replacement directors to the board of Zaio.

Click here to read the full press release.