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YDX arranges $250,000 loan, $450,000 private placement

2020-04-16 16:37 ET - News Release

Mr. Daniel Japiassu reports

YDX INNOVATION ANNOUNCES ENTRY INTO REVOLVING CONVERTIBLE LOAN AGREEMENT AND CONVERTIBLE DEBENTURE FINANCING

YDX Innovation Corp. has entered into an unsecured convertible revolving loan agreement with an arm's-length lender, The Sarwal Group Enterprise Inc., for a revolving loan in the aggregate principal amount of up to $250,000 for a term of one year. The revolving loan can be drawn down by the company in full or in tranches, with such amounts bearing interest at 10 per cent per year and compounded monthly. At any time before the maturity date, the lender may convert any of the outstanding principal amount into common shares of the company at a conversion price of 8.5 cents per share.

Any shares issued on conversion of the revolving loan will be subject to resale restrictions imposed by applicable securities laws. The revolving loan is subject to the approval of the TSX Venture Exchange.

The company has also arranged a non-brokered private placement of up to a maximum of $450,000 principal amount of unsecured convertible debentures. Each debenture will consist of $1,000 aggregate principal amount of unsecured, non-transferable, convertible debentures. The debentures will mature two years following closing of the debenture offering and bear interest at a rate of 10 per cent per year, payable quarterly in cash. The principal amount of the debentures is convertible into shares, at the option of the holder, at a conversion price of 85 cents per share. The company anticipates that the proceeds of the revolving loan and the debenture offering will be used for general working capital purposes.

The debentures, including any shares converted thereunder, will be subject to resale restrictions imposed by applicable securities laws. The debenture offering is subject to approval by the TSX-V.

About YDX Innovation Corp.

YDX Innovation is a technology company that develops products and services. The company is an expert in: immersive technologies like augmented and virtual reality; e-sports events; and interactive exhibitions.

We seek Safe Harbor.

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