Business
Yorkton Equity Group Inc. Announces Unsecured Related Party Loan
(TheNewswire) Edmonton, Alberta – TheNewswire - October 2, 2023 –...
About this update from Yorkton Equity Group Inc
[{"type":"text","content":"Yorkton Equity Group Inc. Announces Unsecured Related Party Loan\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Edmonton, Alberta\n \n \n –\n \n \n TheNewswire -\n \n \n October 2, 2023 – Yorkton Equity Group Inc. (TSXV:YEG)\n(“Yorkton” or the\n \n “Company”) is pleased to announce\nthat it has issued an unsecured grid promissory note to borrow up to a\nmaximum amount of $1,700,000 (the “Promissory Note”) from Lui\nHoldings Corporation (the “Lender”).  The Promissory Note shall\nmature twenty-four (24) months from the date of issuance (the\n“Maturity Date”).  The principal amount outstanding of the\nPromissory Note shall bear interest at a rate of five percent (5%) per\nannum for the first thirty (30) days and ten percent (10%) per annum\nfrom the 31\n \n st\n \n day until\nthe Maturity Date or upon the early repayment of the Promissory Note\nin full, whichever comes first.  The Company shall have the right at\nany time to pay all or any portion of the balance owing on the\nPromissory Note without notice, bonus or penalty.\n \n \n Yorkton intends to use the proceeds from the Promissory Note for the\nacquisition of The Fuse, a 125-unit multi-family residential complex\nin Edmonton, Alberta, as announced on October 2, 2023, and general\nworking capital.\n \n \n Mr. Ben Lui, the President and CEO, director, and majority shareholder\nof the Company, also controls the Lender.  Accordingly, the\nPromissory Note is considered a related party transaction under\nMultilateral Instrument 61-101\n \n Protection of Minority Security Holders in Special\nTransactions\n \n (“MI 61-101”) and the policies of the TSX\nVenture Exchange (the “TSXV”) and Mr. Lui has abstained from\nvoting on the Promissory Note in his capacity as a director of the\nCompany.\n \n \n The Company is exempt from the formal valuation requirement under MI\n61-101 as its common shares are listed for trading on the TSXV.  The\nCompany is also exempt from the minority approval requirement under MI\n61-101 as the Promissory Note has been provided on reasonable\ncommercial terms that are not less advantageous to the Company than if\nit were obtained from an arm’s length party. Furth...