DLTa21 Blockchain Corp. (“DLTa21” or the “Company”), a global technology and blockchain development company, announces that it has entered into a convertible loan transaction with an international investor based in Tokyo, Japan (the “Lender“) pursuant to which the Lender will loan to the Company an aggregate amount of JPY 10,050,000 (the “Loan“). The proceeds of the Loan will be used to meet ongoing financial obligations of the Company in Japan.
The Loan has a term of three (3) months, maturing on October 10, 2019 (the “Maturity Date”), and is repayable in a single installment at maturity. The Loan bears interest at an annual rate of 16%, payable in cash upon the earlier of maturity or conversion of the Loan. The Loan may be advanced in several tranches, with the first tranche being approximately JPY 5,000,000. The Lender shall be paid an arrangement fee equal to 2.5% calculated on and paid at the time each tranche is drawn down under the facility.
The principal amount of the Loan, including any accrued and unpaid interest, may be convertible into common shares of the Company (the “Shares“) at the option of the Lender, at any time following the Maturity Date at a conversion price equal to the Canadian Dollar price per Share such that the Lender would own 90% of the issued and outstanding common Shares of the Company on a fully-diluted basis, utilizing the Bank of Canada noon JPY/CAD foreign exchange conversion rate existing on the date immediately prior to conversion.
The Loan is secured against all property of the Company in accordance with a security agreement which forms an integral part of the Loan.
On behalf of the Board of Directors of DLTa21 Blockchain Corp.
“B. Matthew Hornor”
B. Matthew Hornor
Executive Chairman
For further information, please contact:
DLTa21 Blockchain Corp.
B. Matthew Hornor, Executive Chairman
Email: mh@dlta21.com
Telephone: 778-955-6133
www.dlta21.com