Petro-Victory completes $250,000 (U.S.) loan with 579

Executive Summary

• Petro-Victory Energy Corp. has completed a $250,000 USD short-term borrowing transaction via an unsecured promissory note.
• The transaction is a related-party transaction involving the lender, 579 Max Ltd., whose principal is T. Lynn Bryant, a director of the company.
• The financing includes the issuance of 622,818 bonus warrants to the lender, subject to TSX Venture Exchange acceptance.

Key Details

• Transaction Structure: Unsecured promissory note.
• Principal Amount: $250,000 USD.
• Lender: 579 Max Ltd.
• Interest Rate: 14% per annum.
• Maturity Date: January 26, 2027.
• Warrant Terms:
  • Quantity: 622,818 bonus warrants.
  • Exercise Price: C$0.55 per share.
  • Expiry Date: January 26, 2027.
• Regulatory Status: The loan and warrant issuance are subject to TSX Venture Exchange acceptance.
• Related-Party Disclosure: The transaction constitutes a related-party transaction under Multilateral Instrument 61-101. T. Lynn Bryant, a director and related party, is a principal of the lender.
• Exemptions Applied: The company relied on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the transaction did not exceed 25% of the company's market capitalization.