WINNIPEG, Manitoba – (Marketwired – June 27, 2017) – Kane Biotech Inc. (TSX-V:KNE) (the “Company” or “Kane Biotech”) today announced that it has received a loan (the “Loan”) in the amount of $400,000 from Individual Investment Corporation, an arm’s length third-party lender (the “Lender”). The Loan bears interest at 12% per annum and is repayable after two months. The Corporation has also paid a one-time document review fee of $8,000 to the Lender as additional consideration for the provision of the Loan to the Company.
The Loan has been guaranteed by Richard Renaud, the father of Philip Renaud, the Chairman and a significant shareholder of the Company. It is anticipated that the Loan will be repaid following completion of the current private placement offering of units (comprised of common shares and warrants) by the Company, which is scheduled to close on July 14, 2017. As consideration for guaranteeing the Loan, Richard Renaud has been issued 800,000 share purchase warrants of the Company, each of which entitles Mr. Renaud to purchase one Common Share at a price of $0.18 per Common Share for a period of one year from the date of issuance of the Warrants. The Warrants, and any Common Shares issuable upon exercise thereof, are restricted from transfer for a period of four months in accordance with applicable securities laws.
The proceeds of the Loan will be used as a bridge to the completion of the current private placement offering by the Company and for general working capital purposes.
The closing of the Loan transaction is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.