Valens GroWorks Corp. (CSE:VGW)(CSE:VGW.CN) (the “Company” or “Valens“) reports that it has issued a convertible unsecured note (the “Note“) to an outside director of the Company (the “Lender“), for an aggregate principal amount of $500,000. The CEO of the Company has personally guaranteed the prompt, punctual and full payment of the Note when due. Note proceeds will be used for the purposes of meeting Company expansion obligations and for general corporate purposes.
The Note will mature in one year and bear interest at 10% per annum from the date of funds advance until the earlier of the date the Note, together with all accrued interest, is repaid in full, and the date of completion of the Option Exercise (as defined below).
Prior to the date of closing of the next corporate financing (the “Financing“), the Lender has the option but not the obligation to exchange all or part of the Note and accrued interest (the “Option Exercise“) into common shares of the Company (“Common Shares“) under the same terms and conditions as, and as a participant in the Financing. The Lender accepts the risk that a Financing may not be completed. Any Common Shares issued will be subject to restrictions on transfer that may be imposed by regulatory authorities and underwriters.
The Company has indemnified and holds harmless the CEO for any liability incurred by him by reason of his execution of any personal guarantee for the Company’s benefit (including but not limited to personal guarantees in connection with office or equipment leases, commercial loans or promissory notes).
About Valens GroWorks Corp.
Valens GroWorks Corp. is a CSE-listed company with an aggressive acquisition strategy in progress, providing management, consulting, testing and support services to domestic and international licensees, financing the expansion of fully licensed operations in Arizona, as well as the proposed Continue Reading