GC-Global Capital Corp. and Poydras Specialty Finance Corp. Enter Into A Secured Convertible Debenture

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[{"type":"text","content":"\nGC-Global Capital Corp. and Poydras Specialty Finance Corp. Enter Into A Secured Convertible DebentureToronto, Ontario--(Newsfile Corp. - October 10, 2013) - \n GC-Global Capital Corp. (TSXV: GDE.A)(\"Global Capital\") and Poydras Specialty Finance Corp. (“Poydras”) are pleased to announce the completion of a 12% secured convertible debenture (the \n“Loan”) in the principal amount of $2,875,000. Global Capital’s total participation was $800,000 of the total financing. The net proceeds of the Loan shall be used to as working capital for Poydras.\n\nPoydras is an Ontario corporation and the majority owner of Poydras Gaming, LLLP, a provider of capital and gaming equipment to casino operators and vendors in the U.S. Poydras Gaming currently owns slot machines operating in Oklahoma, and intends \nto use the funding from the financing to expand its operations in Oklahoma, and to enter into markets in other US states including initially California.\n\n“Poydras has an experienced management team with extensive relationships in the U.S. gaming sector. They are focused on building a specialty finance company targeting the gaming equipment space while generating high levels of distributable \ncash. We are pleased to be able to provide this financing and are looking forward to working with them.” said Global Capital’s C.E.O., Jason Ewart.\n\nThe Loan matures two years from the effective closing date of September 30, 2013, and bears interest at 12% annum, payable semi-annually for the first year and 15% per annum payable quarterly for the second year. The debenture is convertible into \ncommon shares of Poydras at a price of $0.10 per share immediately prior, but subject to, the closing of a reverse takeover (“RTO”) with a listed public company. If Global Capital does not provide notice of conversion to Poydras, \nthen upon closing of the RTO the Secured Convertible Debentures will, without further action by Global Capital, automatically be substituted for convertible debentures (“Replacement Debentures”) of the Resulting Issuer. The Replacement \nDebentures will be convertible into participating equity securities of the Resulting Issuer at a price equal to the lesser of: a) $0.15 per security of the Resulting Issuer; or b) that price which is 85% of the o...

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