Mr. Val Jedras reports
ZOGLO'S ANNOUNCES A SECURED loan OF UP TO $600,000
Zoglo's Food Corp. has entered into a loan agreement with Henry Ender with respect to a loan for a principal amount of up to $600,000, as evidenced by a promissory note. The loan is repayable in full on Feb. 10, 2024, and will bear interest at a rate of 6 per cent per annum. Interest is payable on the maturity date. In certain circumstances, the loan is convertible, at the discretion of the lender, into common shares of the company at an exercise price of the greater of 10 cents and the lowest price permitted under the policies of the Canadian Securities Exchange.
As security for the payment of the company's obligations and fulfilment and satisfaction of all covenants and agreements made under the loan agreement, the company has, concurrently with the loan agreement, entered into a general security agreement with the lender pursuant to which the company granted the lender a security interest in all personal property of the company.
The proceeds of the loan will be used by the company for working capital and general corporate purposes. No finders' fees were issued in connection with the loan.
The lender is a director of the company. As such, the loan constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The loan is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the loan does not exceed 25 per cent of the company's market capitalization.
This transaction completed less than 21 days after the date of this news release, as several material matters were uncertain and not ascertainable until at, or close to, the date of this release. These matters include the loan amount, the terms of the loan agreement and additional matters tied to the execution of the loan documents. Due to, in part, the foregoing, the company was unable to issue this release prior to today's date with any certainty, and in the company's opinion this shorter period was unavoidable and reasonable and necessary in the circumstances.
About Zoglo's Food Corp.
Zoglo's Food is a publicly traded plant-based food company that offers nutrient-rich, plant-based appetizers, veggies and meat substitutes to fulfill consumers' needs for all occasions and cooking requirements. The company's wholly owned subsidiary, Zoglo's Food Inc., currently offers 14 products through its Traditional Green Box product line and aims to offer 12 innovative products for the mainstream market through its new Zoglo's Black Box product line. Over the past 25 years, Zoglo's products have been distributed in over 3,000 retail stores across Canada including Walmart, Shoppers Drug Mart, Sobeys and Loblaws, and have representation in the United States and Europe. The company trades on the Canadian Securities Exchange under the ticker: ZOG and the Frankfurt Stock Exchange under the ticker: 7UT.
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