/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE
SERVICES/
VANCOUVER, May 6, 2020 /CNW/ - H-Source, Inc. the wholly
owned subsidiary and operating entity of H-Source Holdings Ltd.
(TSX-V: HSI; OTCQB: HSCHF) (the "Company" or "H-Source") entered
into an unsecured promissory note (the "Note") with Washington
Trust Bank as the lender in the principal amount of $211,800. The Note was obtained pursuant to the
Paycheck Protection Program (the "PPP") of the Coronavirus Aid,
Relief, and Economic Security Act (the "CARES Act") administered by
the U.S. Small Business Administration ("SBA"). The Note is dated
May 5, 2020 and matures two years
from the disbursement date. The Note bears interest at a rate of
1.00 % per annum, which shall be deferred for the first six months
of the term of the Note. After the initial deferral period, the
Note requires monthly payments of principal and interest until
maturity with respect to any portion of the Note which is not
forgiven as described below. The Company is permitted to prepay or
partially prepay the PPP Note at any time with no prepayment
penalties.
Under the terms of the CARES Act, PPP loan recipients can apply
for, and be granted forgiveness for all or a portion of loans
granted under the PPP. Such forgiveness will be determined, subject
to limitations and ongoing rule making by the SBA, based on the use
of loan proceeds for payroll costs, including payments required to
continue group health care benefits, and certain rent, utility, and
mortgage interest costs and the maintenance of employee and
compensation levels. While there is no assurance the Company will
obtain forgiveness of the PPP loan in whole or in part, the Company
intends to use the proceeds of the Note for qualifying
expenses.
On behalf of the board of directors of H-Source Holdings
Ltd.
"John
Kupice"
John Kupice
CEO and Director
Neither 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 release. This news release may contain
forward-looking statements. These statements are based on current
expectations and assumptions that are subject to risks and
uncertainties. Actual results could differ materially because of
factors discussed in the management discussion and analysis section
of our interim and most recent annual financial statement or other
reports and filings with the TSX Venture Exchange and applicable
Canadian securities regulations. We do not assume any obligation to
update any forward-looking statements, except as required by
applicable laws.
SOURCE H-Source Holdings Ltd.