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The loans bear interest at an annual rate of 12%, payable quarterly, and are due March 4th, 2009. The proceeds from the loans have been added to Sonomax's working capital. Sonomax anticipates that the final closing of the financing for the remaining $105,000 will take place on or about November 30th, 2009.
As part of the transaction, Sonomax has issued common share purchase warrants to each lender on the basis of eight warrants for each dollar of principal amount loaned. As a result, Sonomax has issued an aggregate of 5,160,000 warrants. Each warrant will entitle the holder to purchase one additional common share of Sonomax for one year at a price of $0.10 per share. The warrants are non-transferable.
The common shares purchase warrants issued by Sonomax under the first closing of the financing are subject, upon exercise, to a four-month hold period expiring on March 5th, 2009, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. -- www.cnxmarketlink.com
Posted November 8th, 2008 by ruzik_tuzik
