AgriMarine has $1,700,000 Increase to Loan from Dundee13 June 2013
CANADA - AgriMarine Holdings has reached an agreement with Dundee Agricultural Corporation over the approval of the TSX Venture Exchange, pursuant to which Dundee will advance an additional $1,700,000 to the company under a loan previously announced on February 7, 2013.
The Amended Loan will be evidenced by an amended and restated promissory note in the principal amount of $3,529,032.88 (consisting of $1,750,000 principal amount on the Original Loan, $79,032.88 of accrued interest on the Original Loan and an additional advance of $1,700,000) and will replace the Original Loan.
The Amended Loan will continue to bear interest at a rate of 12.68 per cent per annum and will be due on demand.
Pursuant to the terms of the Amended Loan, and subject to the approval of the Exchange, Dundee may elect to convert the principal balance of the Amended Loan into common shares of the Company at any time at a price of $0.18 per share.
The proceeds of the Amended Loan will be used to settle indebtedness of the Company’s Chinese subsidiary, Benxi AgriMarine Inc. and to provide sufficient capital to bring the Company in good standing and resume full operation of the Company’s operations in China.
The Note will be subject to a hold period which will expire four months and one day from the date of issue. No finders’ fees are payable in connection with the Amended Loan.
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