Naturally Splendid (TSXV:NSP) announced today it has entered into a loan agreement with Robert Schulz, whereby the lender has agreed to loan Naturally Splendid $100,000 for a period of two years at an interest rate of 12 per cent per annum.
As quoted in the press release:
Prior to the maturity date, Naturally Splendid will have the right to repay all of the outstanding balance of the loan by paying the lender an amount equal to 124 per cent of the loan less any accrued interest paid by Naturally Splendid, provided that either: (i) Naturally Splendid completes financings totalling at least $1.5-million in the year following the date of acceptance by the TSX Venture Exchange of the loan; or (ii) Naturally Splendid exercises this right one year after the exchange acceptance date. Further, the lender will also have the right to have Naturally Splendid repay the loan prior to the maturity date at the repayment price, provided that Naturally Splendid completes financings totalling at least $1.5-million in the year following the exchange acceptance date.
As additional consideration of the loan, Naturally Splendid has agreed to issue 95,238 common shares to the lender. The loan will be used for working capital. The loan agreement and the bonus shares are subject to acceptance by the TSX Venture Exchange.