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| Home : Synodon Announces Closing of Financing |
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Apr 07
2015 |
Synodon Announces Closing of Financing |
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EDMONTON, ALBERTA--(Marketwired - April 6, 2015) - Synodon Inc. ("Synodon") (TSX VENTURE:SYD) announces the closing of the previously announced $3 million bridge loan facility (the "Bridge Loan") with Cranberry Capital Inc. ("Cranberry Capital"), a private Canadian holding company owned by Mr. Paul van Eeden. The Bridge Loan has been put in place to ensure the continuing operations of Synodon and allow it to proceed with the construction of two additional realSensT instruments until such time as more permanent capital can be put in place. The Bridge Loan bears interest at 12% per annum and Cranberry Capital was paid a setup fee of $100,000 in conjunction with the loan. Interest will be payable monthly in cash in arrears. The Bridge Loan has a maturity date of March 31, 2016. The Bridge Loan includes certain customary events of default, including a change of control of Synodon. It is also an event of default if Mr. van Eeden ceases to own at least 20% of Synodon or if he involuntarily ceases to be Executive Chairman. The Bridge Loan is secured by the assets of Synodon. The Bridge Loan is expected to be serviced with cash flow from operations until such time as Synodon can raise sufficient capital from issuing equity to pay down the Bridge Loan. The net proceeds of any such equity financing are required to be used to repay the Bridge Loan prior to any other use thereof. |
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| Source:http://www.marketwired.com/mw/release.do?id=2006926&sourceType=3 |
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