GC-Global Capital Corp. and the Hydropothecary Corporation Enter into a Secured Convertible Debenture

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[{"type":"text","content":"GC-Global Capital Corp. and the Hydropothecary Corporation Enter into a Secured Convertible DebentureToronto, Ontario--(Newsfile Corp. - December 18, 2014) - GC-Global Capital Corp. \n(TSXV: GDE.A) (\"Global Capital\") and The Hydropothecary Corporation \n(\"THC\") are pleased to announce the completion of a 12% secured convertible \ndebenture (the \"Loan\") in the principal amount of $1,015,000. Global Capital's \ntotal participation was $500,000 of the total financing. The net proceeds of the \nLoan shall be used to as working capital for THC.\nTHC, through its wholly-owned subsidiary, 167151 Canada Inc. \n(\"167151\"), is licensed under the Marihuana for Medical Purposes \nRegulations to produce, possess and destroy marijuana seeds and plants and \ndried marijuana product. THC's facilities are located in Gatineau, Québec. \nOn December 2, 2014, THC and BFK Capital Corp. (\"BFK\"), a Capital Pool Company, announced that they have entered into a \nnon-binding letter of intent to complete a business combination (the \n\"Transaction\"). The transaction terms set out in a letter of intent are \nnon-binding, and the Transaction is subject to the parties successfully \nnegotiating and entering into a definitive business combination agreement in \nrespect of the Transaction (the \"Definitive Agreement\") on or before January 30, \n2015 or such other date as BFK and THC may agree. THC, through 167151, expects \nto obtain the license to sell and ship such product prior, and as a condition, \nto the completion of the proposed Transaction. \nThe Loan matures 12 months from the effective closing date of \nDecember 16, 2014, and bears interest at 12% annum, payable every four months \nwith the first payment due March 31, 2015. The debenture is convertible into \nUnits of THC at a price of $4.00 per Unit. Each Unit consists of 1 common share \nand 1 warrant exercisable for two years from the date of conversion at a price \nof $4.50 per warrant. Subject to the closing of a liquidity event within the \nterm of the Loan, the Loan will be converted into participating equity \nsecurities and warrants of the Resulting Issuer.\nIn May of 2014, Global Capital invested $500,000 into THC at a \ncost of $3.00 per common share. Subsequent to this financing, Jason Ewart, the \nC.E.O. of GC Global Capital Corp. became a Director of THC. Currently th...

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