KADESTONE CAPITAL CORP. ANNOUNCES AMENDED AND RESTATED LOAN AGREEMENT
The aggregate amount of the Loan has increased from $10,000,000 to $10,973,540, which includes $973,540 of accrued interest, and has been extended to May 1, 2028 (the "Maturity Date").
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VANCOUVER, BC, April 25, 2024 /CNW/ - Kadestone Capital Corp. ("Kadestone" or the "Company") (TSXV: KDSX.V) (OTCB: KDCCF), a vertically integrated property company today announced that, further to its news release dated May 2, 2022, the Company has entered into an amended and restated loan agreement with the Zhang Family (2015) Trust (the "Lender") (the "Restated Loan Agreement"), which becomes effective as of May 1, 2024 and amends and restates the term loan previously provided by the Lender to the Company by way of an unsecured, non-revolving credit facility (the "Loan").
The aggregate amount of the Loan has increased from $10,000,000 to $10,973,540, which includes $973,540 of accrued interest, and has been extended to May 1, 2028 (the "Maturity Date"). The Loan bears interest at a rate equal to 9% per annum from May 1, 2024 until April 30, 2025, a rate equal to 11% per annum from May 1, 2025 until April 30, 2026, a rate equal to 13% per annum from May 1, 2026 until April 30, 2027 and a rate equal to 15% from May 1, 2027 to April 30, 2028. The outstanding principal amount of the Loan, together with unpaid and accrued interest thereon, is payable in full at the Maturity Date. Scheduled principal payments of $250,000 are payable to the Lender on the last business day of each fiscal quarter. The Restated Loan Agreement provides the Lender with equity participation rights and a right of first offer with respect to the financing of future real estate development projects. The other terms of the original loan agreement remain unchanged.
About Kadestone
Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income producing properties, and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The Company operates five complimentary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership and property management. These synergistic business lines have solidified Kadestone's vision to become a market leading vertically integrated property company. Additional information can be found at www.kadestone.com.
ON BEHALF OF THE BOARD
(signed) "Brent Billey"
President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward Looking-Statements
Certain information in this news release, including, but not limited to, statements regarding the Company's vision to become a leading vertically integrated company, may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Because of various risks and uncertainties, including those referenced below, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you should not rely on such forward-looking statements. Additional information identifying assumptions, risks and uncertainties relating to Kadestone is contained in Kadestone's filings with the Canadian securities regulators available at www.sedarplus.ca. These risks include those described in the "Risk Factors" section of the Company's final prospectus dated September 2, 2020 and in the Management's Discussion and Analysis for the year ended December 31, 2022 and 2021. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Kadestone Capital Corp.
