Metaguest.AI closes $224,000 tranche of loan facility

Executive Summary

• Metaguest.AI Inc. has closed the second tranche of its secured loan facility, raising an additional $224,000.
• Total funds raised under the $1,000,000 facility now stand at $417,000, combining this tranche with the initial $193,000 closed in May.
• The financing includes a loan advance fee paid in equity (Class A common shares) and is secured by the company's assets, with proceeds designated for working capital.

Key Details

• Tranche Amount: $224,000 gross proceeds from the second tranche.
• Total Facility Raised: $417,000 total (Initial $193,000 + Second Tranche $224,000).
• Facility Limit: Up to $1,000,000 secured loan facility.
• Interest Rate: 12% per annum.
• Loan Advance Fee: 12% fee payable in Class A common shares.
• Fee Settlement: 268,800 Class A common shares issued at a deemed price of 10 cents per share to satisfy the fee for this tranche.
• Term: 12-month term with an option to extend for an additional six months.
• Security: General security agreement over the company's assets; ranks pari passu with existing secured obligations.
• Use of Proceeds: Working capital requirements.
• Related Party Involvement: A trust, where a director serves as one of several trustees, participated in the tranche; this does not constitute a related-party transaction under applicable securities laws.
• Future Plans: Company has commenced work toward closing the third tranche.

Notable Quotes

• None provided in the text.