Ms. Jocelyn Dumas reports

GROUPE BIKINI VILLAGE INC. ENTERS INTO A $750,000 SECURED SHORT TERM BRIDGE LOAN AND COMPLETES A $1,000,000 PRIVATE PLACEMENT OF SECURED DEBENTURES

Groupe Bikini Village Inc. has entered into a $750,000 secured short-term bridge loan and has completed a private placement of secured redeemable debentures for an aggregate principal amount of $1-million. Shareholders of the corporation subscribed for the debentures. The loan and private placement will provide additional short-term working capital to the corporation.

The transactions

The loan bears interest at an annual rate of 12 per cent and will be reimbursable in tranches. The first tranche is in the amount of $250,000 and is due on Dec. 31, 2014, the second tranche is in the amount of $125,000 and is due on Jan. 15, 2015, and the balance, in the amount of $375,000, is due at the expiry of the loan on Jan. 31, 2015.

The debentures will mature on Jan. 31, 2015, and will bear interest at an annual rate of 12 per cent, which is payable in full, along with the principal amount, at maturity. The corporation has the option to redeem the debentures, in whole or in part, before maturity.

Takota Asset Management currently has ownership or control of 288,780 common shares of the corporation, 677,760 warrants convertible into the same number of common shares and secured convertible debentures of the corporation in an amount of $847,200.

Elmag Investments Inc. currently has ownership or control of 380,000 common shares of the corporation, 800,000 warrants convertible into the same number of common shares and a $1-million secured convertible debenture of the corporation.

Takota and Elmag each subscribed to a $333,333 debenture under the private placement. These transactions have no effect on the percentage of securities beneficially owned by Takota and Elmag.

The private placement is exempt from valuation and minority shareholder approval under Section 5.5(g) of Multilateral Instrument 61-101, protection of minority securityholders in special transactions. The corporation did not file a material change report less than 21 days before the closing of the private placement given its purpose.

Resignation of Scott Leckie, director

Scott Leckie has resigned as a director of the corporation in order to devote all of his energy to Takota.

"We are very grateful to Mr. Leckie for this valuable contribution and insight over the years," said Jocelyn Dumas, executive chairman of the board.

We seek Safe Harbor.