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Resverlogix Announces Extension of Maturity Date of Loan and Expression of Interest Regarding Strategic Transaction
Resverlogix Announces Extension of Maturity Date of Loan and Expression of Interest Regard...
About this update from Resverlogix Corp.
[{"type":"text","content":"\n\n\n\nResverlogix Announces Extension of Maturity Date of Loan and Expression of Interest Regarding Strategic Transaction\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Aug. 28, 2017\n\n\n\nCALGARY, Aug. 28, 2017 /CNW/ - Resverlogix Corp. (\"Resverlogix\" or the \"Company\") (TSX:RVX) announced today the following update on its corporate activities. \n\nExtension of Maturity Date of Loan\n\nThe Company announced that the maturity date of the Company's CAD$68.8 million Loan (the \"Loan\") will be extended from August 28, 2017 to December 26, 2017. In addition, interest on the Loan shall continue to accrue, but shall not be payable until the new maturity date. The Loan is secured by an irrevocable CAD$68.8 million Standby Letter of Credit (the \"Letter of Credit\") in favour of the lender arranged by Eastern Capital Limited (\"Eastern\") which will be maintained until maturity of the Loan. In conjunction with the Loan extension, the Loan will be assigned from Citibank, N.A. to a lender affiliated, directly or indirectly, with Eastern (the \"Lender\"). \n\nThe Company previously agreed to indemnify Eastern for any amounts drawn under the Letter of Credit, pledged its issued patents and certain tax loss pools to Eastern as security for its obligations under the indemnity and agreed to pay a fee in the amount of 0.03 percent per annum on the undrawn amount of the Letter of Credit. In connection with the extension of the Loan, the Company will grant to the Lender a security interest in all of its assets as security for the Loan and the Company will increase the fee payable to Eastern on the undrawn amount of the Letter of Credit from 0.03 percent to 12 percent per annum.\n\nThe Loan extension is subject to execution of definitive agreements and satisfaction of customary closing conditions which is expected to occur on or before August 31, 2017.\n\nMr. Donald McCaffrey, President and CEO stated, \"We are pleased that the loan has been extended for four months as we expect, within that period of time, to close the contemplated transaction we a...