"As a condition of obtaining the covenant waiver, the Company agreed to exercise commercially
reasonable efforts to effect a sale or other transaction of all or a portion of its assets by July 31, 2014. The
Company has engaged a financial advisor to assist with this process."
Subsequent to December 31, 2013, the Company executed a Waiver and Credit Amendment Agreement (“Amendment
Agreement”) which renegotiated the terms of its $25.0 million term loan (the “Loan”) with Crown Capital Partners Inc.
(“CCP”). The Amendment Agreement has modified certain covenants within the original Term loan with CCP. The
timing of principal payments has not changed pursuant to the Amendment Agreement; monthly payments of $0.3
million will begin in May 2014. Interest on the Term loan remains fixed at 10 percent, compounds monthly and is
payable monthly. The maturity date of the Term loan remains 60 months from closing (April 2018). As a condition of
the amending agreement, the Company agreed to exercise commercially reasonable efforts to effect a sale or other
transaction of all or a portion of its assets by July 31, 2014. The Company has engaged a financial advisor to assist with
this process. Upon mutual agreement with CCP, prepayment fees pursuant to the original agreement have been waived.
In addition, the 5,750,000 common share purchase warrants pursuant to the original agreement have been cancelled in
conjunction with the waiver of the covenant breach for consideration of $1.0 million (Note 24 (d)).
Maybe that's why they appointed an interim CEO because of the possibility of Claude becoming an "interim business." Or perhaps, another financing deal will need to be made to borrow from Peter to pay Paul. Those who live by the private placement, perish by the private placement. IMO, Claude needs to get Santoy 8 into production now because the clock is ticking.