VANCOUVER, British Columbia, March 07, 2019 (GLOBE NEWSWIRE) -- GCC Global Capital Corporation (GCCC.V) (the “Company”) is pleased to announce that it has entered into a loan agreement (the “Loan Agreement”) to borrow up to a maximum amount of $1,000,000 (the “Loan”) from Jiu Fa Investments Ltd. (the “Lender”). The principal amount of the Loan under the Loan Agreement shall bear interest at a rate of 12.0% per annum and the Loan shall mature on the earlier of: (i) February 28, 2021; or (ii) the date that Metath Investment Co., Ltd. ceases to own, or have control or direction over, common shares of the Company (“Common Shares”) representing at least 20% of the issued and outstanding Common Shares.
The Lender has provided an initial advance to the Company under the Loan Agreement in the aggregate amount of $50,000. Further amounts may be advanced during the term of the Loan in such amounts and at such times as agreed to by the Lender and the Company, up to the maximum amount of the Loan. Amounts outstanding under the Loan will be represented by a grid promissory note issued by the Company in favour of the Lender.
The Company intends to use the proceeds of the Loan to fund its operations and for general and administrative expenses.
Mr. Huijun Wang, a director and the Chief Executive Officer of the Company, is also the President of the Lender. Accordingly, the Loan is considered a related party transaction under the policies of the TSX Venture Exchange (the “TSXV”) and Mr. Wang abstained from voting on the Loan in his capacity as a director of the Company.
The Company is exempt from the formal valuation requirement under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) as its Common Shares are listed for trading on the TSXV. The Company is also exempt from the minority approval requirement under MI 61-101 as the 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. Further, the Loan is not convertible into or repayable in securities of the Company.
The Company did not file a material change report more than 21 days before the expected closing of the Loan, as the details of the Loan were not finalized until immediately prior to the closing and the Company wished to close the transaction as soon as practicable for sound business reasons.
About GCC Global Capital Corporation
GCC Global Capital Corporation is listed on the TSX Venture Exchange as an Investment Issuer. The Company focuses on the real estate, natural resources and high tech industries.
For further information please contact Andrew Liu, Chief Financial Officer at (778) 389-9960.
Neither the 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.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking information relating to the use of proceeds of the Loan. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The material factors and assumptions include the cost of operations and the availability of future capital. Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: the need to obtain additional financing to continue operations and uncertainty as to the availability and terms of future financing; changes in tax laws; general economic and business conditions; and changes in regulations. The Company cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.