Business
Solution Financial Completes Convertible Debenture Financing
Vancouver, British Columbia--(Newsfile Corp. - July 29, 2022) - Solution Financial Inc. (TSX:...
About this update from Solution Financial Inc.
[{"type":"text","content":"Solution Financial Completes Convertible Debenture FinancingVancouver, British Columbia--(Newsfile Corp. - July 29, 2022) - Solution Financial Inc. (TSX: SFI) (OTCQX: SLNFF) (the \"Company\") is pleased to announce that it has closed a non-brokered financing of unsecured convertible debentures (the \"Debentures\") with a principal amount of $3,175,400. The Debentures mature on the second anniversary of the date of issuance and bear interest at a rate of 5.00% per annum, calculated and paid semi-annually. The principal amount and any accrued and unpaid interest on the Debentures may be convertible into common shares in the capital of the Company (\"Shares\"), in whole or in part, at any time before or on the maturity date at a conversion price of $0.38 per Share. The Debenture financing consisted of a reinvestment of convertible debentures with a principal amount of $3,175,400 set to mature in March 2023.\"We would like to thank our debenture holders for the continued support as we continue to position ourselves to support the long term needs of our network of dealerships in BC, Alberta and Ontario\", began Bryan Pang, CEO. Our lease portfolio continues to perform very well despite the recent increases in the Canadian prime lending rates. Securing this fixed rate 5% financing will help limit the impact of increasing lending rates on the business. Although the luxury auto industry has seen its share of challenges in 2022, we remain committed and supportive of the industry which has yielded premium valuations on our portfolio resales and allowed us to maintain steady profitability,\" concluded Bryan.The Company plans to use the proceeds of the financing to support the Company's portfolio of in-house leases.The offering of the Debentures is subject to the receipt of all necessary regulatory approvals. The Debentures and any Shares issued upon conversion within four months and one day of the closing date are subject to a statutory holder period until November 29, 2022. The Debentures are not listed or posted for trading on any exchange. Sean Hodgins, the Chief Financial Officer of the Company, and Kerry Meier, a director of the Company, both participated in the private placement. Mr. Hodgins acquired Debentures with a principal amount of $100,000 and Mr. Meier acquired Debentures with a principal amount of $300,000. Such participatio...