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Kovo+ Announces Extension of Senior Loan Agreement and Secured Promissory Grid Note, Management Change
Calgary, Alberta--(Newsfile Corp. - July 31, 2025) - Kovo+ Holdings Inc. (TSXV: KOVO) (" Kovo " o...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo+ Announces Extension of Senior Loan Agreement and Secured Promissory Grid Note, Management ChangeCalgary, Alberta--(Newsfile Corp. - July 31, 2025) - Kovo+ Holdings Inc. (TSXV: KOVO) (\"Kovo\" or the \"Company\") is pleased to announce that, further to its press release of June 30, 2025, it has entered into a third extension agreement (the \"Extension Agreement\") with Avonlea Ventures #2 Inc. (\"AVI\"), Kovo's largest shareholder and secured creditor, whereby AVI has agreed: (i) to extend the terms of the 2nd Amended & Restated Senior Loan and Security Agreement (the \"Senior Loan Agreement\") and secured promissory grid note (the \"Secured Prom Note\") for a period of one (1) month, respectively, and now maturing on August 29, 2025 (\"Maturity Date\"); and (ii) to increase the principal amount available for borrowing under the Secured Prom Note from USD$850,000 to USD$1,250,000. The other terms, as set out in the Senior Loan Agreement and Secured Prom Note, remain unchanged.In connection with the Extension Agreement, Kovo granted AVI a fee of two percent (2%), representing the aggregate indebtedness owing by Kovo to AVI under the Senior Loan Agreement and Secured Prom Note, which fee is payable in cash at the Maturity Date, or such later date as mutually agreed between the parties.Related Party TransactionsAVI is an Ontario corporation controlled by Mr. Michael Steele, a current director and controlling indirect shareholder of the Company. Mr. Steele is also a director, officer and the sole indirect beneficial shareholder of AVI, which is also considered a \"Non-Arm's Length Party\" pursuant to the policies of the TSX Venture Exchange.As AVI is a \"related party\" of the Company, entering into the Extension Agreement and matters relating thereto (the \"Transactions\") are considered to be \"related party transactions\" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") requiring Kovo, in the absence of exemptions, to obtain a formal valuation and minority shareholder approval of the related party transactions.Pursuant to Sections 5.5(b), 5.5(g), 5.7(1)(e) and 5.7(1)(f) of MI 61-101, the Company relied on exemptions from the formal valuation and minority shareholder requirements, respectively, as, in addition to no securities of the Com...