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VANCOUVER, May 6, 2020 /CNW/ - H-Source, Inc. the wholly owned subsidiary and operating entity of H-Source Holdings Ltd. (TSX-V: HSI; OTCQB: HSCHF) (the "Company" or "H-Source") entered into an unsecured promissory note (the "Note") with Washington Trust Bank as the lender in the principal amount of $211,800. The Note was obtained pursuant to the Paycheck Protection Program (the "PPP") of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") administered by the U.S. Small Business Administration ("SBA"). The Note is dated May 5, 2020 and matures two years from the disbursement date. The Note bears interest at a rate of 1.00 % per annum, which shall be deferred for the first six months of the term of the Note. After the initial deferral period, the Note requires monthly payments of principal and interest until maturity with respect to any portion of the Note which is not forgiven as described below. The Company is permitted to prepay or partially prepay the PPP Note at any time with no prepayment penalties.
Under the terms of the CARES Act, PPP loan recipients can apply for, and be granted forgiveness for all or a portion of loans granted under the PPP. Such forgiveness will be determined, subject to limitations and ongoing rule making by the SBA, based on the use of loan proceeds for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest costs and the maintenance of employee and compensation levels. While there is no assurance the Company will obtain forgiveness of the PPP loan in whole or in part, the Company intends to use the proceeds of the Note for qualifying expenses.
On behalf of the board of directors of H-Source Holdings Ltd.
CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
SOURCE H-Source Holdings Ltd.
For further information: investors @h-source.com