Mr. Doug McCollam reports
ARISE TECHNOLOGIES CLOSES BRIDGE LOAN
ARISE Technologies Corp. closed a $1.75-million (U.S.)
bridge loan on Oct. 29, 2010, from Haverstock Master Fund Ltd. and Trenrasp LLC. The purpose of the loan is to provide working capital
bridge financing to the company. The loan matures on March 31, 2011, but
is required to be repaid earlier in the event that ARISE completes a
public equity offering in excess of $5-million or a sale of any assets
for proceeds in excess of $4-million.
Interest on the loan is payable quarterly and accrues initially at a
rate of 10 per cent per year which rate increases by 1 per cent per month that the
loan remains outstanding up to a rate of 14 per cent per year. No share
purchase warrants were issued in connection with the loan. The loan is
secured with a general security agreement on the assets of the
company. In the event that the company does not repay the loan by
March 31, 2011, the lenders have the option to convert the loan into
ARISE common shares at up to a 20-per-cent discount to the proceeding five-day
volume-weighted average price of the common shares on the Toronto Stock Exchange.
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