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Victory Enters Into Supplementary Agreement, Settles VPEG Loan and Secures Interim Debt Facility to Begin Energy-Tech Company Buildout
Victory Enters Into Supplementary Agreement, Settles VPEG Loan and Secures Interim Debt Facility to Begin Energy-Tech Company Buildout.
About this update from Victory Oilfield Tech, Inc.
[{"type":"text","content":"\n\n AUSTIN, Texas, April 16, 2018 (GLOBE NEWSWIRE) -- Victory Energy Corporation (OTCQB:VYEY) (\"Victory\" or the “Company”), recently filed with the Securities and Exchange Commission a Current Report on Form 8-K providing, among other things, a market update relating to the entry into (i) a supplementary agreement with Armacor Victory Ventures (\"AVV\"), (ii) a settlement and mutual release of the loan agreement with Visionary Private Equity Group I, LP (\"VPEG\"), and (iii) a new interim debt facility with VPEG intended to help accelerate the Company’s transition into the oilfield energy-tech industry. As part of these transactions, the Company is contemplating a private placement offering of up to $7 million, the net proceeds of which are expected to be utilized for targeted oilfield service company acquisitions, buildout of key infrastructure needs, including expansion of early-stage product manufacturing and distribution, order fulfillment, customer support, key executive team buildout and the launch of a branding effort to expand awareness of Victory's revolutionary amorphous alloy coatings products.\n SUPPLEMENTARY AGREEMENT WITH ARMACOR VICTORY VENTURESOn April 10, 2018, Victory and AVV entered into a Supplementary Agreement, pursuant to which the Series B Preferred Stock held by AVV will be canceled and exchanged for 20,000,000 shares of Victory’s common stock. The agreement requires AVV to use its best efforts to facilitate the proposed private placement and to invest a minimum of $500,000 in the proposed private placement. SETTLEMENT OF VPEG DEBT AND ENTRY IN TO NEW LOAN AGREEMENT WITH VPEGOn April 10, 2018, Victory and VPEG entered into a settlement agreement and mutual release, pursuant to which (i) VPEG will release and discharge Victory from its obligations of $1,410,200 under the existing VPEG debt facility, which will be terminated, and (ii) Victory and VPEG entered into a new debt facility pursuant to which VPEG may, in its sole discretion, loan Victory up to $2 million.  Any loan made pursuant to the new debt agreement will be evidenced by a secured convertible original issue discount promissory note, which will reflect a 10% original issue discount, will not bear any interest in addition to the original issue discount (other than default interest), and will be sec...