Ria's $750,000 National Bank loan assigned to Chinook
2012-02-24 06:32 PT - News Release
IMHO...This is some fancy "stick handling". One has to ask ...Who benefits from this financial manouver?......in time.....maybe all of us. Cheap paper and patience, makes the world go around.
Mr. Glenn Hamilton reports
RIA RESOURCES CORP. ANNOUNCES ASSIGNMENT OF LOAN
National Bank of Canada has assigned Ria Resources Corp.'s outstanding $750,000 loan to Chinook Financial Ltd. National Bank has also assigned all security agreements relating to the loan to Chinook. As a condition to agreeing to assume the Loan, Chinook entered into a loan assumption and amending agreement with Ria. Under the terms of the assumption agreement, Ria agreed, among other things, to: (i) increase the interest rate of the loan from 7.5 per cent per annum to 8.0 per cent per annum; and (ii) extend the term of the loan to five years. In addition, Ria agreed, subject to regulatory approval, to issue 1.3 million common share purchase warrants to Chinook as a bonus. Each whole warrant is exercisable into one common share of Ria at 20 cents per share. The warrants will have a term of five years (subject to earlier termination in accordance with TSX Venture Exchange Policy 5.1).
The assumption agreement (and the issue of the bonus to Chinook thereunder) constitutes a related-party transaction as a director of the corporation also owns and controls Chinook. The assumption agreement was approved by disinterested directors of Ria. The corporation relies on certain exemptions from formal valuation requirements and minority approval requirement under MI 61-101 -- Protection of Minority Security Holders in Special Transactions -- with respect to this transaction.