KADESTONE CAPITAL CORP. ANNOUNCES LOAN AGREEMENT
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISTRIBUTION IN UNITED STATES/
VANCOUVER, BC, May 2, 2022 /CNW/ – Kadestone Capital Corp. (“Kadestone“or the”Company“) (TSXV: KDSX) (OTCB: KDCCF), a vertically integrated real estate company, today announces that it has entered into an agreement (the “Loan Agreement”) with the Zhang Family Trust (2015) (the ” Lender”), pursuant to which the Lender will provide a term loan to Kadestone by way of an unsecured, non-revolving credit facility (the “Facility”) in an aggregate maximum amount of up to 10 million Canadian dollars. Proceeds from the facility are to be used by Kadestone for general working capital purposes.
Interest is payable on the unpaid amounts of the facility at the rate of 5% per annum. The principal amount outstanding and any interest accrued thereon are payable on the earlier of (i) the maturity of the facility on March 31, 2024 and (ii) the occurrence of an event of default under the Loan Agreement.
The loan agreement also grants the lender certain participation rights in future equity financings of Kadestone as well as a right of first offer with respect to the financing of future real estate development projects.
Kadestone was established to pursue the investment, acquisition, development and management of income-generating residential and commercial properties and the supply and sale of building materials in major urban centers and high-growth emerging markets. in Canada. The Company operates five complementary business segments covering sourcing and supply of building materials, real estate development and construction, construction finance, asset ownership and property management. These synergistic business areas have cemented Kadestone’s vision of becoming a market-leading vertically integrated real estate company. Additional information can be found at www.kadestone.com.
ON BEHALF OF COUNCIL
(sign) “Brent Billy”
President, CEO and Director
Neither the 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.
Caution Regarding Forward-Looking Statements
Certain information contained in this press release, including but not limited to statements that capital from the sale of the Kyle Road property will enable the Company to repay its debt and the Company’s vision to become a leading vertically integrated real estate company, may constitute forward-looking information (collectively, forward-looking statements), which can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, ” project”, “estimate”, “intend”, “continue” or “believe” (or the negatives) or other similar variations. Due to various risks and uncertainties, including those mentioned below, actual events or results may differ materially from those reflected or contemplated in these forward-looking statements. Accordingly, you should not rely on these forward-looking statements. Additional information identifying assumptions, risks and uncertainties relating to Kadestone is contained in Kadestone’s filings with Canadian securities regulators available at www.sedar.com. These risks include those described in the “Risk Factors” section of the Company’s final prospectus dated September 22020 and in the management report for the years ended December 31, 2021 and 2020. The forward-looking statements contained in this press release speak only as of the date of this release or as of the date specified in the relevant forward-looking statement. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Kadestone Capital Corp.
For further information: David Negus, Chief Financial Officer, Kadestone Capital Corp., [email protected]