MONTREAL, Feb. 26, 2014 /CNW Telbec/ - Mazen Haddad, Chairman of the Board of Directors, President and Chief Executive Officer of Knowlton Capital Inc. (TSXV: KWC.H), announces that he has entered into a Loan Agreement dated February 21, 2014 with Knowlton Capital for a convertible loan to Knowlton Capital in a principal amount of CAD$25,000. The loan bears interest at a rate of 10% per annum, payable annually, and will mature on February 21, 2015. Subject to the approval of the NEX Board of the TSX Venture Exchange, the loan is convertible at a conversion price of $0.05 per share into a maximum of 500,000 Knowlton Capital common shares at any time at the option of the lender. If the loan is so converted, each share will be accompanied by one common share purchase warrant. Each warrant will entitle its holder to purchase one additional common share of Knowlton Capital at a price of $0.05 for a period of twelve months following the date of issuance of the warrants.
Immediately following the foregoing transaction, Mazen Haddad directly and indirectly owns the following Knowlton Capital securities: (i) 6,956,495 common shares, representing approximately 26.1% of the issued and outstanding common shares of Knowlton Capital, (ii) convertible loans that may be converted into a maximum of 900,000 common shares and 900,000 warrants, and (iii) stock options in respect of 1,558,775 common shares. Assuming full conversion of the loans and exercise of all warrants and stock options held by Mr. Haddad, he would own 10,315,270 common shares, representing 34.34% of the Knowlton Capital common shares that would then be issued and outstanding.
Mr. Haddad made the convertible loan to Knowlton Capital in order to provide working capital. In accordance with applicable securities laws, Mr. Haddad may, from time to time and at any time, acquire additional common shares of Knowlton Capital and/or other equity, debt or other securities or instruments of Knowlton Capital in the open market or otherwise, and he reserves the right to dispose of any or all of his Knowlton Capital securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the securities, the whole depending on market conditions, the business and prospects of Knowlton Capital and other relevant factors. Mr. Haddad is resident in Monte Carlo, Monaco.
SOURCE: Knowlton Capital Inc.
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