Urban Infrastructure Secures Debt

Executive Summary

• Urban Infrastructure Group Inc. (TSXV: UIG) has entered into a loan arrangement with a related party, receiving an aggregate of $500,000 to be used for working capital and general corporate purposes.
• The loan carries a 12% annual interest rate, is evidenced by a promissory note, and is repayable six months from issuance.
• As a loan bonus, subject to TSX Venture Exchange approval, the company intends to issue 5,000,000 common share purchase warrants to the lender, exercisable at $0.05 per share for one year.

Key Details

• Loan Principal: $500,000 advanced by a related party lender.
• Interest Rate: 12% per annum.
• Repayment Terms: Repayable on the date six months from issuance.
• Use of Proceeds: Working capital and general corporate purposes.
• Warrant Terms (Loan Bonus):
  • Quantity: 5,000,000 common share purchase warrants.
  • Exercise Price: $0.05 per share.
  • Expiry Date: One year from the date of the promissory notes.
  • Condition: Subject to approval of the TSX Venture Exchange.
• Finder’s Fee: $25,000 paid to an arm's length third party in connection with the loan.
• Regulatory Status: Classified as a Related Party Transaction under Multilateral Instrument 61-101; exempt from formal valuation and minority approval requirements as the fair market value of consideration did not exceed 25% of the company's market capitalization.