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home / news releases / MPXOF - MPX International Announces Draw Down of Short Term Bridge Loan Financing in the Amount of C$1262500


MPXOF - MPX International Announces Draw Down of Short Term Bridge Loan Financing in the Amount of C$1262500

(TheNewswire)



TORONTO, ONTARIO – TheNewswire- April 30, 2021 – MPX International Corporation (“ MPXInternational ”, “ MPXI ” or the“ Corporation ”) (CSE:MPXI ) ; (CNSX:MPXI.CN); ( OTC:MPXOF), a multinational diversifiedcannabis company, is pleased to announce that it has closed on thesecond tranche of a short-term loan financing (the “ Bridge Loan ”) of upto approximately C$3,750,000 (US$3,000,000) from a group of currentinvestors. The Corporation has drawn down on a total of C$2,575,000(US$2,060) loan funds from both tranches as follows: (a) 1 st Tranche whichclosed on April 21, 2021 - C$1,312,500 (US$1,050,000); and (b)2 nd Tranche  which closed on April 30, 2021 – C$1,262,500(US$1,010,000). The Corporation expects to the draw down on theremaining funds in prior to the end of the Corporation’s3 rd quarter on June 30, 2021.

The Corporation will use the proceeds from the loan tofund product and facility development and for general corporate andworking capital purposes.

The Bridge Loan will mature 3 months from the date ofissuance (the “ MaturityDate ”) and bear interest at a rate of 12% perannum calculated in arrears and payable in cashon the earlier of the Maturity Date or concurrently with theconversion of the Bridge Loan into the non-brokered private placementoffering of units (the “ Units ”) whereby the Corporation raisedC$10,200,000 (US$7,500,000) between June 30, 2020 and February 11,2021 (the “ Offering ”) pursuant to the debentureindenture dated June 30, 2020 entered into between theCorporation and AST Trust Company (Canada) (the “ Debenture Trustee ”) as amended by the supplemental debentureindenture dated September 16, 2020 and the second supplementaldebenture indenture dated December 18, 2020 (as amended, supplementedor otherwise modified from time to time) providing for the issuance of12% secured convertible dentures of the Corporation (each, an“ SCD ”) in the aggregate principal amount of up to C$10,200,000(US$7,500,000) (the “ Debenture Indenture ”) the warrant indenturedated June 30, 2020 entered into between the Corporation and AST TrustCompany (Canada) (the “ Warrant Agent ”) as amended by thesupplemental warrant indenture dated September 16, 2020 and the secondsupplemental warrant indenture (the “ Warrant Indenture ”)dated December 18, 2020 (as amended, supplemented or otherwisemodified from time to time) providing for the issuance of up to52,500,000 common share purchase warrants (each, an “ SCD Warrant ”) .

Upon the entering into of boththe 3 rd supplementary debenture indenture to the Debenture Indentureand the 3 rd supplementary warrant indenture to the WarrantIndenture, the principal amount of the BridgeLoan shall automatically convert in the Offering at a conversionpremium equal to ten percent (10%) of their principal amount.

Each Unit of the Offering will be issued on the sameterms as those previously announced, subject to certain amendments tothe Debenture Indenture and Warrant Indenture to be proposed toDebentureholders, at a price of C$1,360 (US$1,000) per Unit with eachUnit consists of one SCD in the principal amount of C$1,360 (US$1,000) (the “ PrincipalAmount ”) convertible at a deemed price of $0.13 per share and 7,000 SCD Warrants.

The Corporation shall pay a non-refundable cash origination fee in the aggregate amount of C$75,000 ( US$60,000) to certain Bridge Loan lendersadvancing funds in the initial tranches of the Bridge Loan at the time of such advance.

The Corporation shallalso issue an aggregate of 9,000,000 common share purchase warrants(the “ BonusWarrants ”) to certain Bridge Loan lenders advancing fundsin the initial tranches of the Bridge Loan . EachBonus Warrant shall be exercisable for a period of sixty (60) monthsfrom the date of issuance and enable the holder thereof to purchaseone common share in the capital of the Corporation (a “ Common Share ”) atan exercise price equal to C$0.20 as well as theopportunity to acquire part of the Corporation’s interest in one ormore potential future transactions.

Each of the following events constitutes an event ofdefault: (a) the Corporation fails to pay when due, after anyapplicable grace periods, any outstanding principal amount hereunderor any accrued and unpaid interest on suchprincipal amount; (b) the Corporation shall not have complied with itscovenants; and (c) if any representation or warranty made by theCorporation pursuant to which the loan was issued was false orinaccurate in any material respect when made.

No finder fees have been paid in connection with theBridge Loan.

About MPX InternationalCorporation

MPX International Corporation is a multinational diversified cannabis company focused on developing and operating assets across theinternational cannabis industry with an emphasis on cultivating,manufacturing and marketing products which include cannabinoids astheir primary active ingredient. With current operations spanning fourcontinents in Canada, Switzerland, South Africa, Malta and Australiaas well as evolving partnership and distribution opportunities inother jurisdictions, MPXI continues to position itself as an emergentglobal participant in the cannabis industry.

Cautionary Statement RegardingForward-Looking Information

This news release includes certain“forward-looking statements” under applicable Canadian securitieslegislation that are not historical facts. Forward-looking statementsinvolve risks, uncertainties, and other factors that could causeactual results, performance, prospects, and opportunities to differmaterially from those expressed or implied by such forward-lookingstatements. Forward-looking statements in this news release include,but are not limited to, MPX International’s objectives andintentions.  Forward-looking statements are necessarily based on anumber of estimates and assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties and otherfactors which may cause actual results and future events to differmaterially from those expressed or implied by such forward-lookingstatements. Such factors include, but are not limited to: generalbusiness, economic and social uncertainties; litigation, legislative,environmental and other judicial, regulatory, political andcompetitive developments; delay or failure to receive board,shareholder or regulatory approvals; the Corporation’s ability toeffectively deal with the restrictions, limitations and health issuespresented by the COVID-19 pandemic; future cannabis pricing; cannabiscultivation yields; costs of inputs; its ability to market productssuccessfully to its anticipated clients; reliance on key personnel andcontracted relationships with third parties; the regulatoryenvironment in Australia, Canada, Malta, South Africa, Switzerland andother international jurisdictions; the ability to complete any futurepotential transactions and the terms and conditions thereof; theapplication of federal, state, provincial, county and municipal laws;and the impact of increasing competition; those additional risks set out in MPXInternational’s public documents filed on SEDAR at www.sedar.com , including its audited annualconsolidated financial statements for the financial years endedSeptember 30, 2020 and 2019, and the corresponding management’sdiscussion and analysis; and other matters discussed in this newsrelease. Although MPX International believes that the assumptions andfactors used in preparing the forward-looking statements arereasonable, undue reliance should not be placed on these statements,which only apply as of the date of this news release, and no assurancecan be given that such events will occur in the disclosed time framesor at all. Except where required by law, MPX International disclaimsany intention or obligation to update or revise any forward-lookingstatement, whether as a result of new information, future events, orotherwise.

For further information about MPXI,please contact:

MPX International Corporation

W. Scott Boyes, Chairman, President andCEO

T: +1-416-840-4703
info@mpxinternationalcorp.com

or visit one our websites:

NOT FOR DISTRIBUTION TO NEWSWIRESERVICES IN THE UNITED STATES OR FOR DISSEMINATION IN THE UNITEDSTATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE AVIOLATION OF UNITED STATES SECURITIES LAWS.

Copyright (c) 2021 TheNewswire - All rights reserved.

Stock Information

Company Name: MPX International Corp
Stock Symbol: MPXOF
Market: OTC
Website: mpxinternationalcorp.com

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