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Composite Alliance Group Announces Amendments to Previously Issued Debentures and Loans
Calgary, Alberta--(Newsfile Corp. - September 29, 2021) - Composite Alliance Group Inc. (TSXV:...
About this update from Composite Alliance Group, Inc. Class A
[{"type":"text","content":"Composite Alliance Group Announces Amendments to Previously Issued Debentures and LoansCalgary, Alberta--(Newsfile Corp. - September 29, 2021) - Composite Alliance Group Inc. (TSXV: CAG) (the \"Company\" or \"CAG\") announces that it has entered into amending agreements with the related party creditors Malchemy Corporation Limited (\"Malchemy\"), Team Alpha Limited (\"TAL\") and K Plus Capital LLC (\"K Plus\") for the following debentures and loans:No.Debenture/LoanLenderPrincipal ($)Terms AmendedAnnual Interest Rate**Maturity1July 2019 debentureTALCND 400,000From 5% to 2%-2Oct 2019 debentureTALUSD 351,507.25From 5% to 2%From Oct 7 2024to Jan 31 20263Nov 2020 debenture-01MalchemyCND 600,000From 5% to 2%-4Nov 2020 debenture-02K PlusCND 60,000From 5% to 2%-5Nov 2020 debenture-03*TALCND 1,000,000From 5% to 2%-6Convertible bond tranche BMalchemyEUR 1,500,005From 3% to 2%From Dec 31 2022to Jan 31 20267LoansMalchemyEUR 950,000-From Dec 31 2022to Jan 31 2026 *No amount has been drawn as of the date of this news release.**Effective from October 1, 2021.Malchemy is an entity controlled by Sicheng Zhang, a director, officer and shareholder of the Company, and TAL and K Plus are entities controlled by Jim Hsieh, a director, officer and shareholder of the Company. Other than the amendments described herein, the other terms of the debentures and loans remain the same. The purpose of the amending agreements is to reduce the cost to the Company of the debentures and loans and to extend the maturity dates to provide CAG with more flexibility to repay the debentures and loans.Related Party Participation The amendments to the debentures and the loans are with entities controlled by insiders of CAG. As insiders of the Company participated in these transactions, they are deemed to be \"related party transactions\" as defined under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions (\"MI 61-101\").The amending agreements were unanimously approved by the board of directors of the Company, with Sicheng Zhang and Jim Hsieh abstaining. The amendments to the debentures and the loans are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(a) and 5.7(1)(a)) as the amendments to the debentures and loans have a fair market value not more tha...