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Kovo+ Holdings Inc. Announces Amendments to Secured Promissory Note
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2025) - Kovo+ Holdings Inc. (formerly Kovo ...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo+ Holdings Inc. Announces Amendments to Secured Promissory NoteVancouver, British Columbia--(Newsfile Corp. - May 9, 2025) - Kovo+ Holdings Inc. (formerly Kovo HealthTech Corporation) (TSXV: KOVO) (\"Kovo\" or the \"Company\") announces that it has entered into a second amendment agreement (the \"Amendment Agreement\") with Vantage Business Management Services (\"Vantage\"), whereby it agreed to make certain amendments to a Secured Promissory Note dated January 21, 2021 (the \"Original Note\") as amended by way of Amendment No. 1 to the Original Note dated November 8, 2021 (the \"First Amendment\" and together with the Original Note, the \"Note\").AmendmentUnder the Amendment Agreement, the parties amended the Note to provide for, among other things, an extended term for a 5-year period expiring April 28, 2030. The indebtedness owing thereunder will be made in 20 quarterly installments, with the first payment due June 30, 2025, and each installment due on the last day of each quarter thereafter. Commencing May 1, 2025, the outstanding principal amount (USD$195,586.76) bears interest at a rate of four percent (4%) per annum, calculated monthly and compounded annually. No new security has been granted in favour of the lender in connection with the Amendment Agreement, and the loan is secured by the existing security granted and perfected pursuant to a pledge agreement entered into concurrently with the First Amendment to provide the lender with security for the repayment of amounts due under the Note. The other terms, as set out in the Note, remain unchanged. Related Party TransactionVantage is a \"related party\" of the Company, and the Note, entering into of the Amendment 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) and 5.7(1)(a) of MI 61-101, the Company is relying on exemptions from the formal valuation and minority shareholder approval requirements, respectively, as no securities of the Company are listed or quoted on certain specified exchanges and ne...