Mississauga, ON – Armada Data Corporation (TSX.V: ARD) (the “Company” or “Armada”) is pleased to announce that it has entered into a loan agreement (the “Loan Agreement”) to borrow up to a maximum of $200,000 (the “loan”) of 2190960 Ontario Ltd. (the lender’). As collateral for the Loan, a general surety agreement was entered into in favor of the Lender. The loan bears interest at the rate of 12% per annum payable monthly from the applicable date of advance. The loan matures on September 28, 2025.
The amounts will be advanced during the term of the loan in the amounts and at the times requested by the Company, up to the maximum amount of $200,000. The amounts outstanding under the Loan will be evidenced by a checkered promissory note issued by the Company in favor of the Lender.
The Company intends to use the loan proceeds for working capital and general and corporate purposes. The Company intends to repay the loan from cash flow from operations.
The lender is a company owned and controlled by James Matthews, Director and Chief Executive Officer of the Company. Accordingly, the loan is a related party transaction within the meaning of TSXV Policy 5.9 and National Instrument 61-101 (“NI 61-101”). A resolution of the Company’s Board of Directors was passed approving the loan, with James Matthews abstain from voting. No materially adverse opinion or abstention was expressed or made by any other director.
The Company relied on the exemptions from the NI 61-101 minority shareholder valuation and approval requirements contained in Sections 5.5(b) (TSXV-listed company) and 5.7(1)(f) ( loan to the issuer, no shares or voting rights component) with respect to this transaction. The Loan was obtained on reasonable commercial terms that were no less advantageous to the Company than if the Loan had been obtained from an arm’s length party; and the Loan is neither convertible nor redeemable in securities of the Company.
The Company did not file a material change report more than 21 days before closing, which it considers reasonable under the circumstances, as the loan was not finalized with a related party of the Company until shortly before closing and the Company was attempting to close the transaction quickly.
About Armada Data Corp.
Armada Data is a publicly traded Canadian company Information and Marketing Services Company to provide accurate, real-time data to institutional and retail clients, by developing, owning and operating automotive price-related websites and by providing information technology and marketing services to its clients.
Armada Data The shares are listed on the TSX Venture Exchange under the symbol ARD. Armada currently has a total of 17,670,265 shares outstanding.
Additional information relating to Armada Data Corporation is filed on SEDAR and can be viewed at www.sedar.com.
Armada Data Corporation
Mr. R. James Matthews
President and CEO
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(C) 2022 electronic news edition, source ENP Newswire