VANCOUVER, July 26, 2019 /CNW/ - UrtheCast Corp. (TSX:UR)
("UrtheCast" or the "Company"), a leading provider of
information-rich products and services in the rapidly growing
geospatial and geo-analytics markets, is pleased to announce the
closing of a US$1.5 million term loan
and provide a corporate update.
US$1.5 Million Term
Loan
UrtheCast has entered into a US$1.5
million term loan (the "New Term Loan") with Lunar
Ventures Inc. ("Lunar") through 1185781 B.C. Ltd. (the "Borrower"), a
wholly-owned subsidiary of the Company. The New Term Loan: (i)
accrues interest at a rate of 17% per annum; (ii) has a maturity
date of January 15, 2020; and (iii)
is secured by all of the assets owned by the Borrower and any net
proceeds from the proposed sale of the Company's Deimos assets, if
and when such sale is completed. The proceeds of the New Term Loan
will be used for general corporate purposes.
In satisfaction of conditions required by the lender, the
Borrower has paid Lunar a finance fee in the amount of US$45,000 and UrtheCast agreed to issue to Lunar
10,560,000 common share purchase warrants of UrtheCast having a
maturity date of June 26, 2024 and an
exercise price of $0.48 per common
share (subject to adjustment in certain circumstances, including if
the Company issues any common shares or securities convertible into
common shares, other than pursuant to its equity incentive plan, at
a lower price, in which case the exercise price shall be reduced to
such lower price), subject to approval from the TSX.
Corporate Update
UrtheCast Imaging, S.L.U., a wholly-owned subsidiary of
UrtheCast, has agreed with Banco de Sabadell S.A., under its €25
million senior secured term loan dated December 11, 2015 (the "Sabadell Loan"),
to defer a previously negotiated principal repayment of €1.5
million from July 31, 2019 to
August 31, 2019.
About UrtheCast
UrtheCast Corp. is a Vancouver-based company that serves the
rapidly growing and evolving geospatial and geo-analytics markets
with a wide range of information-rich products and
services.
For more information, visit UrtheCast's website at
www.urthecast.com.
Forward Looking Information
This release contains certain information which, as
presented, constitutes "forward-looking information" within the
meaning of applicable Canadian securities laws. Forward-looking
information involves statements that relate to future events and
often addresses expected future business and financial performance,
containing words such as "plan" and "propose", statements that an
action or event "may" or "will" be taken or occur, or other similar
expressions and includes, but is not limited to, statements
relating to: UrtheCast's expectations with respect to its ability
to raise capital and to continue as a going concern; expectations
regarding UrtheCast's ability to meet its obligations and satisfy
its liabilities under its existing
indebtedness and the New Term Loan;
expectations regarding a proposed sale or other monetization of all
or substantially all of Deimos Imaging and its related business and
assets; and UrtheCast's expectations with respect to repayment of
the Sabadell Loan. Such statements reflect UrtheCast's current
views with respect to future events, and are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable by UrtheCast as at the date of this press release, are
inherently subject to significant uncertainties and contingencies.
Many factors could cause UrtheCast's actual results or performance
to be materially different from expectations that may be expressed
or implied by such forward-looking statements, including, among
others: the Company's ability to rectify its current cash
constraints and to continue as a going concern; the Company's
ability to enter into alternative financing for the UrtheDaily
satellite constellation, and any delays or failures in the design,
development, construction, launch and operational commissioning of
the such constellation; the Company's ability to comply with debt
and repayment obligations and avoid the exercise of lenders'
rights, including with respect to seizing secured assets and other
rights available to lenders, including Lunar; the Company's
inability to repay the Sabadell Loan; lower than expected revenues
from the Company's products and services; the Company's ability to
fund its future operations, which is contingent on its efforts to
raise additional financing and/or sell certain assets of the
Company; the Company's ability to successfully complete a sale or
other transaction involving Deimos Imaging on commercially
reasonable terms, or at all; loss, reduction in scope, termination,
failure to satisfy conditions precedent or decline in general of
the Company's agreements or relationships with its key partners,
including Land O' Lakes, Inc.; and those factors and
assumptions discussed in UrtheCast's Annual Information Form dated
March 29, 2019, which is available
under UrtheCast's SEDAR profile
at www.sedar.com. UrtheCast cautions
readers that such factors and uncertainties are not exhaustive and
that should certain risks or uncertainties materialize, or should
underlying estimates or assumptions prove incorrect, actual
results, performance or achievements may vary significantly from
those expected. UrtheCast undertakes no obligation to update
forward-looking statements except as required by Canadian
securities laws. Readers are cautioned against attributing undue
certainty to forward-looking statements.
SOURCE UrtheCast Corp.