Fura Arranges US$2.5 Million Bridge Financing
Fura Arranges US$2.5 Million Bridge Financing
TORONTO, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Fura Gems Inc. (“Fura” or the “Company”) (TSXV: FURA, OTC: FUGMF and FRA: BJ43) is pleased to announce it has arranged for additional bridge financing in the amount of US$2,500,000 (the “Bridge Loan”). The Bridge Loan will be available for draw down by Fura pursuant to a demand promissory note (the “Note”) issued to Fura’s majority shareholder, Lord of Seven Hills Holdings FZE (the “Purchaser”). The Bridge Loan will bear interest at a rate of ten percent per annum and shall be payable upon demand.
The proceeds of the Bridge Loan are expected to be used for general corporate purposes.
The Purchaser is both a “related party” and a “control person” of the Company pursuant to Canadian securities laws. Issuing the Note to the Purchaser is therefore considered to be a “related party transaction” under MI 61-101 but is exempted from the requirement to obtain a formal valuation pursuant to 5.5(b) and from the requirement to obtain minority approval pursuant to 5.7(1)(f) of MI 61-101, as the issuance of the Note (i) is on reasonable commercial terms that are not less advantageous to the Company than if the loan was obtained from an arm’s length party, and (ii) is not convertible, directly or indirectly, into equity or voting securities of the Company or a subsidiary of the Company or repayable as to principal or interest, directly or indirectly, in equity or voting securities of the Company or a subsidiary of the Company. The Company did not file a material change report more than 21 days before issuing the Note as the terms of the Note were not settled until shortly prior to issuance, and the Company wished to complete the Bridge Loan on an expedited basis.
Fura Gems Inc.
Dev Shetty – President & Chief Executive Officer