Green Rise Approves and Completes Issue of $1.2 Million Non-Convertible Secured Notes

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[{"type":"text","content":"Green Rise Approves and Completes Issue of $1.2 Million Non-Convertible Secured NotesToronto, Ontario--(Newsfile Corp. - August 29, 2024) - Green Rise Foods Inc. (TSXV: GRF) (\"Green Rise\" or the \"Corporation\") today announced that the Corporation issued to three directors of the Corporation, Messrs. Vincent Narang, Enrico Paolone and Stanley Thomas, or family corporations controlled by them or with which they have a relationship (each a \"Lender\" and collectively, the \"Lenders\"), an aggregate of $1.2 million of non-convertible promissory notes (each a \"Note\" and collectively, the \"Notes\") evidencing separate loans to such persons in the principal amount of $400,000 each (each a \"Loan\" and collectively the \"Loans\").Loans will be secured by separate general security agreements charging personal property of the Corporation (each a \"GSA\" and collectively the \"GSAs\"). There will be no equity securities, warrants, finder fees, loan bonuses or commissions issued in association with this issue of the Notes. The security under the Notes will, however, be subordinated in priority to prior security interests held by senior creditors, including the Royal Bank of Canada (\"RBC\") and the indebtedness under the Notes will be postponed to indebtedness under the RBC loans.The Loans, for which the principal amounts were advanced by the Lenders prior to August 1, 2024, will bear interest at 8.31% per annum from the date of advance calculated and paid monthly, provided the Corporation is in compliance with its Banking agreements and obligations, with the principal to be paid at maturity on June 30, 2026, provided that such payment of principal is no longer subject to postponement in favor of RBC, or the latter has consented to such payment. The Corporation, if and when authorized by RBC, would also have the option, from time to time, to repay any principal amount owing under the Notes and any unpaid interest thereon on or before maturity.Since the transactions are \"related party transactions\" under Multilateral Instrument 61-101 – Protection of Minority Security Holder's in Special Transactions (\"MI 61-101\") or because a director participating in the transaction is otherwise interested in the transaction pertaining to him, the Board of Directors had previously authorized the remaining independent directors who ar...

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