Feronia Inc. announces $3 million short-term loan facility
(GLOBE NEWSWIRE) -- Feronia Inc. (“Feronia” or the “Company”) (TSXV: FRN) is pleased to announce that it has entered into a loan facility for up to $3 million. All amounts in this press release are expressed in US dollars unless otherwise indicated.
The unsecured subordinated short term facility bears interest at a rate of 12% per annum and has been provided by CDC Group plc, the UK Government’s Development Finance Institution and KN Agri LLC, the agricultural and food investment vehicle owned by funds that are managed by Kuramo Capital Management, LLC and Nile Capital Management, LLC.
Funds advanced under the facility will be used for working capital and other general corporate purposes whilst the Company seeks to strengthen its financial position through a more comprehensive capital raise.
To date, the Company has received advances under the facility totaling $2.5 million.
The execution of the facility constitutes a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on valuation and minority approval exemptions set forth in MI 61-101.