Mr. Brent Billey reports

KADESTONE CAPITAL CORP. ANNOUNCES AMENDED AND RESTATED LOAN AGREEMENT

Kadestone Capital Corp., further to its news release dated May 2, 2022, has entered into an amended and restated loan agreement with the Zhang Family (2015) Trust (the lender), which becomes effective as of May 1, 2024, and amends and restates the term loan previously provided by the lender to the company by way of an unsecured, non-revolving credit facility.

The aggregate amount of the loan has increased from $10-million to $10,973,540, which includes $973,540 of accrued interest, and has been extended to May 1, 2028. The loan bears interest at a rate equal to 9 per cent per annum from May 1, 2024, until April 30, 2025, a rate equal to 11 per cent per annum from May 1, 2025, until April 30, 2026, a rate equal to 13 per cent per annum from May 1, 2026, until April 30, 2027, and a rate equal to 15 per cent from May 1, 2027, to April 30, 2028. The outstanding principal amount of the loan, together with unpaid and accrued interest thereon, is payable in full at the maturity date. Scheduled principal payments of $250,000 are payable to the lender on the last business day of each fiscal quarter. The restated loan agreement provides the lender with equity participation rights and a right of first offer with respect to the financing of future real estate development projects. The other terms of the original loan agreement remain unchanged.

About Kadestone Capital Corp.

Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income-producing properties, and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The company operates five complementary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership, and property management. These synergistic business lines have solidified Kadestone's vision to become a market-leading vertically integrated property company.

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