GTEC Secures $4.0 Million Financing, Pays Off MMCAP Debentures
GTEC Holdings (TSXV: GTEC) has managed to secure $4.0 million in debt financing just in the nick of time. Funds raised from the secured financing have been utilized to pay off a $3.7 million principal in debt owed to MMCAP Canadian Fund LP, which was to mature on June 11, 2020.
The financing takes the form a senior secured debt facility, with the total financing coming in at $3,950,000. The funding was provided by that of NFS Leasing Canada, and has been secured via a general security interest and mortgages on property owned by GTEC. The term of the facility is for a period of 36 months, with interest-only payments occurring during the first year, commencing July 1.
The debt will bear interest at a rate of 18% per annum, in addition to $395,000 worth of shares being issued in connection with the offering. As a result, the firm expects to issue 2,135,135 common shares at a price of $0.185 per share.
As previously identified, funds from the secured financing were utilized to pay off outstanding principal and interest owed to MMCAP, which was conducted on June 8, 2020.
Further, the company and Trichome Financial have agreed to mutually terminate a previously announced term sheet for $4.5 million.
GTEC Holdings last traded at $0.18 on the TSX Venture.
Information for this briefing was found via Sedar and GTEC Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
