CANADA - AgriMarine Holdings is to receive a loan of $5,000,000 from Dundee Agricultural Corporation, to provide more tanks and support engineering work.
The Loan will be evidenced by a convertible note, will bear interest at a rate of 12.68 per cent per annum and will have a term of one year.
Pursuant to the terms of the loan, the company is required to complete a consolidation of shares within 90 days. Shareholder approval will be sought for the consolidation of shares at the Annual General Meeting of Shareholders to be held on 26 April, 2013.
Subject to the approval of the exchange, Dundee may elect to convert the principal balance of the loan into common shares of the company at any time at a price per share equal to (a) prior to the consolidation, $0.10 per share, and (b) following the consolidation, at a price of $0.015 multiplied by the consolidation ratio.
The proceeds of the loan will be used for the purchase and deployment of further AgriMarine System tanks and for supporting engineering work, filing of patents related to AgriMarine’s IP, working capital and general and administrative expenses.
TheFishSite News Desk