GC-Global Capital Corp. and Poydras Specialty Finance Corp. Enter Into A Secured Convertible Debenture
Toronto, Ontario--(Newsfile Corp. - October 10, 2013) - GC-Global Capital Corp. (TSXV: GDE.A)("Global Capital") and Poydras Specialty Finance Corp. (“Poydras”) are pleased to announce the completion of a 12% secured convertible debenture (the “Loan”) in the principal amount of $2,875,000. Global Capital’s total participation was $800,000 of the total financing. The net proceeds of the Loan shall be used to as working capital for Poydras.
Poydras is an Ontario corporation and the majority owner of Poydras Gaming, LLLP, a provider of capital and gaming equipment to casino operators and vendors in the U.S. Poydras Gaming currently owns slot machines operating in Oklahoma, and intends to use the funding from the financing to expand its operations in Oklahoma, and to enter into markets in other US states including initially California.
“Poydras has an experienced management team with extensive relationships in the U.S. gaming sector. They are focused on building a specialty finance company targeting the gaming equipment space while generating high levels of distributable cash. We are pleased to be able to provide this financing and are looking forward to working with them.” said Global Capital’s C.E.O., Jason Ewart.
The Loan matures two years from the effective closing date of September 30, 2013, and bears interest at 12% annum, payable semi-annually for the first year and 15% per annum payable quarterly for the second year. The debenture is convertible into common shares of Poydras at a price of $0.10 per share immediately prior, but subject to, the closing of a reverse takeover (“RTO”) with a listed public company. If Global Capital does not provide notice of conversion to Poydras, then upon closing of the RTO the Secured Convertible Debentures will, without further action by Global Capital, automatically be substituted for convertible debentures (“Replacement Debentures”) of the Resulting Issuer. The Replacement Debentures will be convertible into participating equity securities of the Resulting Issuer at a price equal to the lesser of: a) $0.15 per security of the Resulting Issuer; or b) that price which is 85% of the offering price of an equity financing or 85% of the exercise price of a convertible debenture financing in respect of the Resulting Issuer completed in connection with the RTO, and in all other respects will contain the same terms as the Debentures. Subject to the above, holders may convert the Replacement Debentures at their election up to the maturity date.
About Global Capital
Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global’s website at www.gcglobalcapital.ca.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.