Business
Yangaroo Closes CAD$500,000 Unsecured Convertible Debenture Financing and Amends Loan Agreement
Toronto, Ontario--(Newsfile Corp. - December 13, 2022) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOO...
About this update from Yangaroo Inc.
[{"type":"text","content":"Yangaroo Closes CAD$500,000 Unsecured Convertible Debenture Financing and Amends Loan AgreementToronto, Ontario--(Newsfile Corp. - December 13, 2022) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF) (\"Yangaroo\", \"Company\"), a software leader in media asset workflow solutions for the advertising and entertainment industries, further to its press release on December 6, 2022, is pleased to announce the closing of its non-brokered, unsecured, convertible debentures (the \"Debentures\") for gross proceeds of CAD $500,000 (the \"Offering\").The OfferingThe Company completed the Offering to satisfy a condition of the National Bank of Canada (\"NBC\") that the Company complete a financing for gross proceeds of CAD $500,000 in order for NBC to provide an amendment to a loan agreement related to all credit facilities of the Company held with NBC (the \"Loan Agreement\"). The terms of the Offering and Debentures are as disclosed in the press release issued on December 6, 2022. The Offering, including each term of the Debentures, received the conditional approval of the TSX Venture Exchange (the \"Exchange\") prior to closing but are subject to the final approval of the Exchange. Although the Debentures are non-transferable, in the event that the Debentures are converted prior April 13, 2022 (the \"Hold Period\"), the underlying common shares will be subject to the remainder of the Hold Period.The NBC Loan AmendmentAs previously disclosed, the Company was in breach of its financial covenants pursuant to the Loan Agreement. As the Company has satisfied the condition of completing the Offering, the Company and NBC have entered into an amending loan facility agreement (the \"Amendment\"), which amends certain terms, such as the termination of certain of the credit facilities, a six-month principal holiday period beginning on January 1, 2023 during which the Company is required to pay interest only on its term loan facility, an increase in the interest rate from National Bank Prime Rate plus 2.45% to National Bank Prime Rate plus 4.45% on its term loan facility, and the amendment of certain financial covenants and ratios and reporting requirements. As a result of the Amendment, the Company is now in good standing with respect to its obligations to NBC.Subscribers to the Offering were required to execute a Subordination and Postponement Agreeme...