Winnipeg, Manitoba – (Newsfile Corp. – September 10, 2024): Novra Technologies Inc. (“Novra”) (TSX-V: NVI) is pleased to announce that yesterday it entered into a binding non-brokered Convertible Loan Agreement in the aggregate of $12.258 million with a US-based private investment group (“Lender”).
Under this Convertible Loan agreement, Lender agrees to loan Novra $12.258 million for a term of up to two years at a fixed interest rate of 1.0% per annum. At its sole discretion, the Lender may elect to convert the outstanding principal balance of the Loan at any time during term to Novra common shares at a rate of $0.34 per share. At the end of the term, should the Lender not convert, Novra has the right to force the conversion of the outstanding Loan principal to shares at the same
fixed rate, or to repay the loan. There is no finders fee associated with this transaction.
The Lender is an arms-length third party and the funds will be used to pay most of Novra’s liabilities and for working capital as Novra continues to invest in R&D, to continue enhancing our product lines, and expansion into new markets with new innovating products and services.
If fully converted, this would result in the issuance of 36,053,000 common shares of Novra. At $0.34, the conversion share price of this agreement is more than eight times yesterday’s closing price of $0.04 for Novra’s shares on TSX-V.
This proposed private placement is subject to the approval of TSX Venture Exchange and may also required approval by Novra’s shareholders. These approvals have not yet been received.