Laredo Oil Inc (LRDC)

[GBRO]

8-K Out

https://www.otcmarkets.com/filing/html?id=14735375&guid=hD7aUKMwM2Uyh3h

Effective as of February 3, 2021, Laredo Oil, Inc. (the “Company”) entered into a Note (the “Note”) with First Horizon Bank for $1,233,655.00 for a Second Draw loan pursuant to the terms of the Paycheck Protection Program (“PPP”) authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and related legislation and regulations (the “Program Rules”). The Note will accrue interest on the outstanding principal sum at the rate of 1.0% per annum, and is due five years from the date of the Note, at which time all unpaid principal, accrued interest and any other amounts will be due and payable. The Company will not be obligated to make any payments of principal or interest if the Company submits a loan forgiveness application to First Horizon within 10 months after the end of the Company's covered loan forgiveness period (as defined and interpreted by the Program Rules) and such loan forgiveness is allowed. If the Company does not submit a loan forgiveness application within 10 months after the end of the Company's loan forgiveness covered period (and such forgiveness is not allowed), the Company must begin paying principal and interest after that period (or after notice that such forgiveness is not allowed). The Company did not provide any collateral or guarantees for the loan, nor did the Company pay any facility charge to obtain the loan. The Note provides for customary events of default, including, among others, those relating to failure to make payment, bankruptcy, breaches of representations and material adverse effects. The Company may prepay the Note at any time without payment of any penalty or premium.