Well this solves a good chunk of the impending debenture debt dilemma.
IBC is pleased to announce that it has entered into a non-revolving credit facility agreement (the “Loan Agreement”) with Mr. Mark Smith (the “Lender”), Chairman and Chief Executive Officer of the Company, pursuant to which Mr. Smith will provide short-term financing to IBC by way of a loan of up to US$1.4 million (the “Loan”), secured by a general security agreement. The Company has also entered into an amendment (the “Amendment”) with the Lender to extend the maturity date on an existing credit facility agreement (the “Existing Loan Agreement”) with the Lender, until December 31, 2024.
The Loan will accrue interest at a rate of 10.0% per annum on the principal amount, with such interest compounded monthly in arrears and payable on August 31, 2023. IBC intends to use the proceeds of the Loan for working capital purposes.
The Loan and the Amendment involve a related party (as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”)), specifically a director and senior officer of the Company, and constitute related party transactions under MI 61-101. These transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(f) of MI 61-101, as the Company is not listed on the markets specified by section 5.4(b) of MI 61-101, and the Loan and the Amendment are on reasonable commercial terms and not convertible into or repayable in equity or voting securities of the Company.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
"Mark Smith”
