​Lomiko Receives LOI For CDN. $5 Million Loan From Private European Firm

Spotlight Companies  |

Lomiko Metals Inc. (LMR:CA) (LMRMF) has signed an agreement with an undisclosed private lender in Europe for a $5-million convertible loan, subject to TSX Venture Exchange approval. Upon approval, the loan shall be disbursed via a secured and authorized financial intermediary facility provider appointed with the consent of both parties.

The use of proceeds for the loan would be the completion of drilling, resource, metallurgy, graphite characterization and pre-economic assessment (PEA) and estimated completion of 100-per-cent purchase of the La Loutre property.

After completion of the work on the property, Lomiko will seek further equity financing to repay the loan in its entirety and/or seek additional funding structures for prefeasibility and feasibility studies. The loan will bear interest on all amounts outstanding, at a fixed annual interest rate of 4.0 per cent, payable on a yearly basis. The first interest payment is due April 25, 2019. All, or part of the loan principal, may be convertible to common shares at 50 cents per share at the end of the loan period, only when such conversion does not create an equity position of greater than 20 per cent of the company's issued shares. The investor has no intention of seeking a controlling interest or change of directors or management. At the time of conversion, if the lender becomes an insider of the company, all applicable TSX-V filings will be completed.

The agreement is not considered a binding agreement on either party until a transfer of funds has been approved and completed.

The loan will rank senior to all other indebtedness of company. Further, the tangible and intangible assets of the company, including receivables, ownership of subsidiaries and intellectual property, are considered secondary security.

The transaction is subject to the approval of the TSX Venture Exchange and the Lomiko board of directors.

In the interest of full disclosure, we call the reader's attention to the fact that Equities.com, Inc. is compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way be considered as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker dealer, investment advisor, financial analyst, investment banker or other investment professional. We are a publisher of original and third party news and information. All profiles are based on information that is available to the public. The information contained herein should not be considered to be complete and is not guaranteed by Equities.com to be free from misstatement or errors. The views expressed are our own and not intended to be the basis for any investment decision. Readers are reminded to do their own due diligence when researching any companies mentioned on this website. Always bear in mind that investing in early-stage companies is risky and you are encouraged to only invest an amount that you can afford to lose completely without any change in your lifestyle. Equities has been compensated with cash, common shares and/or warrants for market awareness services provided.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
LMR:CA Lomiko Metals Inc. 0.06 0.00 0.00 4,010
LMRMF Lomiko Metals Inc Ord 0.05 0.00 4.20 1,500

Comments

Emerging Growth

Alliance Growers Corp

Alliance Growers Corp is a Canada based diversified cannabis company. The company is primarily focused on the development of Cannabis Botany Centres in Canada.