Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE: DVT) announces that it has entered into a secured loan with BC-OSB Holdings Ltd. (the "Lender") for $6.0 million with an initial draw of $5.0 million, repayable September 15, 2020 (the "Loan") with an interest rate of 17% per year compounded monthly in arrears until maturity. Proceeds of the Loan were used to repay a $3.2 million bridge loan with the balance being used to augment working capital.
The Loan ranks senior to the Company's other indebtedness, being $1.0 million of debentures and $5.1 million of shareholder loans, details of which have been previously reported in the Company's annual and quarterly financial filings filed on SEDAR (www.sedar.com) and on the Company's website (http://www.divestco.com/Investor-Relations/Financial-Reports.aspx).
The Company will issue to the Lender 2,675,344 share purchase warrants exercisable for the same number of Class A shares at a price of $0.05 per share unless adjusted by the TSX-V. The warrants shall be exercisable by the Lender until maturity of the Loan subject to a hold period which expires on July 18, 2017, notwithstanding early prepayment. The issuance of the share purchase warrants is subject to approval by the TSX Venture Exchange.
About the Company
Divestco provides innovative geoscience solutions to Energy and Service companies worldwide. Our customers predominantly operate in geology, geophysics, land and engineering and we work with our clients to ensure they have the right solutions, at the right time, to help them make more informed decisions. Commitment, innovation, accountability and agility form the cornerstone of our values and enable us to consistently provide reliable solutions and exceptional, personalized service in all of the core areas in which we operate. Divestco provides Software & Data, Seismic Processing, Geomatics Services, Seismic Data & Brokerage, and Land Services. Divestco is headquartered in Calgary and trades on the TSX Venture Exchange under the symbol "DVT".
Additional information on the Company is available on its website at Divestco.com
SOURCE: Divestco Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.