Premier Diversified Holdings Inc. Announces Loan Agreement
July 29 2019 - 5:30PM
Loan Agreement
Premier Diversified Holdings Inc.
("Premier" or the "Company")
(TSXV: PDH) announces that it has entered into a second loan
agreement with MPIC Fund I, LP ("MPIC") for a
secured loan in the principal amount of up to USD$200,000 (the
"Loan"). The Loan matures on July 10, 2020 and
bears interest at a rate of 6% per annum. The Loan is secured with
all of the present and after-acquired property of the Company, and
ranks equally in priority with the loan previously made to the
Company by MPIC in April 2019.
The Company is not issuing any securities, or
paying any bonus, commission or finder's fees on the Loan. The Loan
is repayable at any time without penalty. The Company expects to
repay the financing upon receiving funds from some of its other
investments.
As MPIC is a control person of Premier, the Loan
constitutes a "related party transaction" within the meaning of
Multilateral Instrument 61-101 Protection of Minority Security
holders in Special Transactions. The Loan has been determined to be
exempt from the requirements to obtain a formal valuation or
minority shareholder approval on the basis of sections 5.5(a) and
5.7(1)(a) of Multilateral Instrument 61-101 as the fair market
value of the transaction is not more than 25% of the Company's
market capitalization.
The Loan was reviewed by the TSX Venture
Exchange, which accepted it for filing on July 26, 2019.
Use of Proceeds
The net proceeds of the Offering and the Loan
will be used for general working capital and may be used to fund
the acquisition of an interest in a public or private entity. The
Issuer may, in its discretion, determine to use the proceeds for
other business purposes as identified by the board of directors and
management.
About Premier Diversified Holdings
Inc.
Premier Diversified Holdings Inc. participates
in diversified industries through its acquisitions of securities
and/or assets of public and private entities which it believes have
potential for significant returns. It may act as a holding company
(either directly or through a subsidiary) and may participate in
management of subsidiary entities to varying degrees.
On behalf of the Board of Directors
"Sanjeev Parsad"
Sanjeev Parsad President, 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 press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of the securities in any jurisdictions in which such
offer, solicitation or sale would be unlawful. Any offering made
will be pursuant to available prospectus exemptions and restricted
to persons to whom the securities may be sold in accordance with
the laws of such jurisdictions, and by persons permitted to sell
the securities in accordance with the laws of such
jurisdictions.
Further information regarding the Company can be
found on SEDAR at www.sedar.com.
Not for dissemination in the United States of
America.
Legal Notice Regarding Forward-Looking
Statements: This news release contains "forward-looking statements"
within the meaning of applicable Canadian securities legislation.
Forward-looking statements are indicated expectations or
intentions. Forward-looking statements in this news release include
that that the net proceeds of the Offering and the Loan will be
used as stated in this news release. Factors that could cause
actual results to be materially different include but are not
limited to the following: that the capital raised will be
insufficient capital to accomplish our intentions and capital alone
may not be sufficient for us to grow our business. Growth depends
on several factors including market conditions. Investors are
cautioned against placing undue reliance on forward-looking
statements. It is not our policy to update forward-looking
statements.
For further information, contact:
Sanjeev Parsad, President and CEO
Phone: (604) 678.9115
Fax: (604) 678.9279
E-mail: sparsad@pdh-inc.com
Web: www.pdh-inc.com
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