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Playground Ventures Announces Debt Settlement and Issuance of Promissory Notes
Toronto, Ontario--(Newsfile Corp. - February 16, 2023) - Playground Ventures Inc. (CSE: PLAY) (th...
About this update from Playground Ventures Inc
[{"type":"text","content":"Playground Ventures Announces Debt Settlement and Issuance of Promissory NotesToronto, Ontario--(Newsfile Corp. - February 16, 2023) - Playground Ventures Inc. (CSE: PLAY) (the \"Company\" or \"Playground\") is pleased to announce it has settled an aggregate of $873,859.95 of indebtedness to certain creditors of the Company through the issuance of 17,477,199 common shares in the capital of the Company (the \"Common Shares\") at a price of $0.05 per Common Share (the \"Debt Settlement\"). The Common Shares issued pursuant to the debt settlement are subject to a four-month hold period and completion of the transaction remains subject to final acceptance of the Canadian Securities Exchange.In addition, the Company announces that it has issued a secured promissory grid note (the \"Bridge Notes\") to certain non-arm's length lenders (the \"Lenders\") of the Company for available proceeds to the Company of up to $100,000. The Bridge Notes mature on April 17, 2023 (the \"Term\"), and are secured against all of the assets of the Company. The Company may draw on the available proceeds of the Bridge Notes from time to time during the Term, and the amounts outstanding under the Bridge Notes bear interest of 8% per annum payable with any outstanding principal at the end of the Term, and the interest increases to 15% per annum upon an event of default. In addition, further to the Company's press release of August 26, 2022, the outstanding Bridge Notes issued on August 23, 2022 have been noted in default and now bear an interest of 15% per annum. The Bridge Notes contains certain other customary financial and other covenants, and will be used for general working capital purposes. The Bridge Notes are intended to provide immediate capital to the Company while it seeks additional sources of capital, which may include the future issuance of other debt or equity securities, including, without limitation, a formal credit facility, whether with the Lenders or otherwise, to meet the Company's long term capital needs.The Debt Settlement and the Bridge Notes are constituted \"related party transactions\" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (\"MI 61-101\"), as certain insiders of the Company received an aggregate of 12,424,923 Common Shares and the Lenders are directors and offic...