Urban Infrastructure Secures Debt
The Loans bears interest at a rate of 12% per annum and is evidenced by a promissory note in favour of the Lender. The Loan is repayable on the date that is six months from issuance.
The Corporation also intends to issue to the Lender, subject to approval of the TSX Venture Exchange (the " TSXV "), as a loan bonus, an aggregate of 5,000,000 common share purchase warrants of the Corporation (" Bonus Warrant "). Each Bonus Warrant entitles the Lender to acquire one (1) common share in the capital of the Corporation at an exercise price of $0.05 per share for a period of one (1) year from the date of the promissory notes (the " Expiry Date ").
The Lenders are "related parties" (as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (" MI 61-101 ")) of the Corporation and, therefore, the Loan is a Related Party Transaction (as defined in MI 61-101). UIG is exempt from the formal valuation requirement and the minority approval requirement under MI 61-101 in respect of the Loan since, at the time of the Loan, the fair market value of the consideration for the Loan did not exceed 25% of UIG's market capitalization.
In connection with the Loan, the Corporation will be paying a finder's fee of $25,000 to an arm's length third party.
About Urban Infrastructure Group
UIG is a leading concrete and drainage infrastructure construction group engaged in the earliest stage of the construction process - known as Stage One. Urban Infrastructure Group specializes in large-scale, master-planned residential communities, with partners and customers behind some of Ontario's most significant residential development projects.
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