CALGARY,
AB, Dec. 20, 2022 /CNW/ - Target Capital
Inc. (the "Company") (NEX: TCI.H) announces that, in connection
with an outstanding secured debt obligation owed to the Company, it
has entered into an agreement (the "Agreement") that
provides for the repayment of $1.85
million, as follows:
- $0.30 million cash payment
received concurrently with signing the Agreement ("Cash
Payment");
- The sale of assets procured by the Company that have an
estimated fair market value ("EFMV") in excess of
$1.00 million ("Procured
Assets"), provided that there is no guarantee the EFMV will be
realized through the sale of the Procured Assets;
- Additional payments, as required, to reach an aggregate
repayment amount of $1.45 million,
inclusive of the Cash Payment and the proceeds from the sale of
Procured Assets, on or before June 30,
2023; and
- $0.40 million of additional
secured asset collateral that will mature no later than
December 31, 2023.
The Agreement also provides for the incremental recovery of up
to $0.90 million (the "Incremental
Amount"), which is in excess of the $1.85 million, from the sale or refinancing of
the Company's counterparty borrower, Performance CBD Brands
Corp.
Timing & Disclosure
With respect to the timing of the receipt of the payments
pursuant to the terms of the Agreement, the Company expects to
receive a cash amount, net of legal fees and selling costs, of
approximately $0.25 million by the
end of 2022. Subsequently, an additional $0.70 million is expected within the first
quarter of 2023. The remaining outstanding amounts, up to an
aggregate repayment of $1.45 million,
are due on or before June 30, 2023,
while any or all of the Incremental Amount may be received after
June 30, 2023.
The Company does not intend to disclose developments with
respect to the recovery process or recovered amounts under the
Agreement, periodically or otherwise, unless it determines that
disclosure is necessary or appropriate.
AGM
The Company also announces that its annual general and special
meeting of shareholders (the "AGM") will be held via webcast
on Tuesday, January 31, 2023 at
10:00 A.M. (Mountain Time). Details
of the agenda and a link to the AGM will be included in the
Company's management information circular, which is to be mailed to
its registered shareholders and filed on SEDAR in connection with
the AGM.
About Target Capital
The Company is a Calgary,
Alberta based entity with a recently appointed interim
leadership team possessing the requisite skills and experience to
pursue a new corporate direction and leverage the Company's
existing assets, public listing and business to consummate one or
more accretive and strategic transactions that support a new
corporate direction. The Company's common shares are listed on the
NEX board of the TSX Venture Exchange under the trading symbol
"TCI.H".
Forward-Looking and Cautionary Statements
This news release may include forward-looking statements
including with respect to the Company's objectives, opinions and
assumptions; changes to the board and management team; and the
timing of continuous disclosure filings. When used in this
document, the words "will," "anticipate," "believe," "estimate,"
"expects," "intent," "may," "project," "should," and similar
expressions are intended to be among the statements that identify
forward-looking statements. Without limitation, this news release
contains forward-looking statements pertaining to the Agreement,
including the amount and timing of recovery under the Agreement and
legal and monetization costs associated with such recovery. The
Company cautions that there are no assurances or guarantees that
the anticipated recovery pursuant to the Agreement will be
realized.
The forward-looking statements are founded on the basis of
expectations and assumptions made by the Company. Forward-looking
statements are subject to a wide range of risks and uncertainties,
and although the Company believes that the expectations represented
by such forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. The Company
cautions that current global uncertainty with respect to the
continued impact of the COVID-19 virus and its effect on the
broader global economy may have a significant negative effect on
the Company. While the precise impact of the COVID-19 virus on the
Company remains unknown, rapid spread of the COVID-19 virus may
have a material adverse effect on global economic activity, and can
result in volatility and disruption to global supply chains,
operations, mobility of people and the financial markets, which
could affect interest rates, credit ratings, credit risk,
inflation, business, financial conditions, results of operations
and other factors relevant to the Company.
Except as required by applicable laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statements.
Neither
the 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 news release.
SOURCE Target Capital Inc.