VANCOUVER, British Columbia, Dec. 01, 2023 (GLOBE NEWSWIRE) -- Birchtree Investments Ltd. (“Birchtree” or the “Company”) (CSE: BRCH), an investment company with the long-term goal of divesting its investment assets at a profit, today announced that it has entered into two (2) loans agreements for aggregate proceeds of $50,000 (collectively, the “Loans”).
The Loans are unsecured, bears an interest fee of 12% per annum and is due three (3) months from the receipt of funds. The lenders have the option to extend the Loans for an additional term of three (3) months. The proceeds from the loan will be used for general working capital.
One of the loan agreements, for aggregate proceeds of $20,000, was entered into with an arm’s length party and the second loan agreement, for aggregate proceeds of $30,000 (the “Related Party Loan”), was entered into with a company that is controlled by a director and officer of the Company.
The Related Party Loan is a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). However, such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value, nor the consideration for the loan, would exceed 25% of Birchtree’s market capitalization. The Company did not file a material change report in respect of the related party transaction at least 21 days prior to the closing of the Loan, which the Company deems reasonable in the circumstances in order to close the Loans in an expeditious manner.
The Related Party Loan has been provided on reasonable commercial terms that are not less advantageous to the Company than if it were obtained from an arm's length party.
About Birchtree
Birchtree is an investment company with the long-term goal of divesting its investment assets at a profit. For more information, please see Birchtree’s continuous disclosure documents available under the Company’s SEDAR profile at www.sedarplus.ca.
For more information, please contact:
Vitali Savitski
Chief Executive Officer Birchtree Investments Ltd.
Tel: (416) 300-0625
Email: birchtreeinvestmentsltd@gmail.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
