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The Good Flour Corp. (GFCOF) secures a $250,000 loan agreement with an arm’s-length lender, offering 10% interest per annum. The unsecured facility aims to support general corporate and working capital needs with a maturity date of six months. Additionally, 1,785,700 share purchase warrants will be issued to the lender, exercisable at $0.14 per share for five years.
Vancouver, British Columbia–(Newsfile Corp. – March 8, 2024) – The Good Flour Corp. (CSE: GFCO) (OTC Pink: GFCOF) (FSE: 3KZ) (“GFCO” or the “Company“) announces that it has entered into a loan agreement dated March 8, 2024 (the “Loan Agreement”) with an arm’s-length lender (the “Lender”) pursuant to which the Company may borrow up to $250,000 in requested drawdowns, from time to time (each advance, a “Loan”). The Loans advanced will bear interest at a rate of 10% per annum and are unsecured, and have a maturity date of six months from the date of the Loan Agreement.
The facility is non-revolving. The Company intends to use any funds advanced as Loans for general corporate and working capital purposes. In connection with making the loan facility available, the Company has agreed to issue up to an aggregate of 1,785,700 share purchase warrants (each, a “Bonus Warrant”) to the Lender on the date of the first advance under the Loan Agreement, with such Bonus Warrants vesting on a pro rata basis upon advance of each Loan pursuant to the Loan Agreement. Each Bonus Warrant will be exercisable into one (1) class “A” common share (each, a “Bonus Warrant Share”) at a price of $0.14 per Bonus Warrant Share for a period of five years from the date of issuance.
About The Good Flour Corp.
For additional information on The Good Flour Corp. please refer to www.goodflour.co.
Company Contact
investors@goodflour.co
604-423-4400
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” concerning anticipated developments and events related to GFCO that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, the terms of the Loan and the use of proceeds from the Loan.
In certain cases, forward-looking information can be identified by the use of words such as “expects”, “intends”, “anticipates” or variations of such words or state that certain actions, events or results “may”, “would”, or “might” suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, the timely receipt of regulatory approvals and the Company’s working capital expectations will be met. While GFCO considers these assumptions to be reasonable, they may be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business uncertainties; the sufficiency of our cash to meet liquidity needs; risks associated with supply chain for machinery and equipment; regulatory, political and competitive developments; failure to attract, maintain and expand relationships with key restaurant and food service partners; changing consumer taste preferences; delay or failure to receive regulatory approvals; failure to attract qualified personnel and the additional risks identified in the “Risk Factors” section of GFCO’s filings with applicable Canadian securities regulators.
Although GFCO has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, GFCO does not undertake any obligation to publicly update forward-looking information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/201126
The company has secured a loan agreement of up to $250,000.
The Loans advanced will bear interest at a rate of 10% per annum.
The Loans have a maturity date of six months from the date of the Loan Agreement.
The company will issue up to 1,785,700 share purchase warrants to the Lender.
The Bonus Warrant Shares are exercisable at a price of $0.14 per share.
