Divestco announces $6M loan financing

CPE News

Calgary (pcJ News Briefs) – Divestco Inc. (TSX-V: DVT) has entered into a secured loan with BC-OSB Holdings Ltd. for $6.0 million with an initial draw of $5.0 million, repayable September 15, 2020 with an interest rate of 17% per year compounded monthly in arrears until maturity.

Proceeds were used to repay a $3.2 million bridge loan with the balance being used to augment working capital.

The loan ranks senior to Divestco’s other indebtedness, being $1.0 million of debentures and $5.1 million of shareholder loans.

Divestco will issue to the Lender 2,675,344 share purchase warrants exercisable for the same number of Class A shares at a price of $0.05 per share unless adjusted by the TSX-V. The warrants shall be exercisable by the Lender until maturity of the Loan subject to a hold period which expires on July 18, 2017, notwithstanding early prepayment. The issuance of the share purchase warrants is subject to approval by the TSX Venture Exchange.

Divestco provides innovative geoscience solutions to Energy and Service companies worldwide. Divestco provides Software & Data, Seismic Processing, Geomatics Services, Seismic Data & Brokerage, and Land Services.