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VANCOUVER, BC, Aug. 27, 2020 /CNW/ - UrtheCast Corp. (TSX: UR) ("UrtheCast" or the "Company") is pleased to announce that its wholly-owned subsidiary, 1185781 B.C. Ltd. (the "Borrower"), has entered into a term loan (the "Term Loan") for up to US$1,000,000 with 1262743 B.C. Ltd. (the "Lender").
The Lender has advanced US$500,000 under the Term Loan and may, upon written request of the Borrower, advance up to an additional US$500,000 at any time before the Term Loan matures. The Term Loan: (i) accrues interest at a rate of 18% per annum; (ii) has a maturity date of November 30, 2020; and (iii) is secured by all of the assets owned by the Borrower. In consideration for the Loan, the Borrower has agreed to pay the Lender a set-up fee of 3% of the principal amount advanced under the Loan. The Loan is be secured by a first priority security interest in the assets of the Borrower.
The proceeds from the Loan will be used for working capital and general corporate purposes and to allow the Company to seek additional sources of financing. If UrtheCast is unsuccessful in obtaining additional financing, the Company may be required to consider other alternatives, including initiating a recapitalization or restructuring of the Company. There can be no assurance that the Company will be successful in obtaining additional funding or, if such funding cannot be obtained, completing a recapitalization or restructuring.
UrtheCast Corp. is a Vancouver-based technology company that serves the rapidly growing and evolving geospatial and geo-analytics markets with a wide range of information-rich products and services.
For more information, visit UrtheCast's website at www.urthecast.com.
Forward Looking Information
This release contains certain information which, as presented, constitutes "forward-looking information" or "forward-oriented financial information" within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "anticipate", "plan", "explore" and "expect", statements that an action or event "may", "should" or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements relating to the use of the Loan proceeds; the requirement to seek additional financing; and future recapitalization options of the Company. Such statements reflect UrtheCast's current views with respect to future events. Such statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by UrtheCast as at the date of this press release, are inherently subject to significant uncertainties and contingencies. Many factors could cause UrtheCast's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. UrtheCast cautions readers that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual results, performance or achievements may vary significantly from those expected. There can be no assurance that the actual strategies, results, performance, events or activities anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company.
UrtheCast undertakes no obligation to update forward-looking statements except as required by Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.
SOURCE UrtheCast Corp.
For further information: Sai Chu, Chief Financial Officer, UrtheCast Corp., +1 (604) 669-1788