By Angela McDaniels
Seattle, Nov. 2 - Response Biomedical Corp. said it has arranged with Hans E. Moppert, its largest shareholder who owns approximately 10% of the company's shares, to guarantee a new line of credit due June 30, 2006 from Toronto-Dominion Bank.
The interest rate on the credit facility is the prime rate, currently 6.75%.
The company said the line of credit is established under the same terms as the company's current $1 million revolving demand credit facility funded by Moppert, due to expire Dec. 30.
In anticipation of continued working capital needs related to the scale-up of Response's facilities and processes, the company and Moppert have agreed that he will guarantee a subsequent credit facility with the Toronto-Dominion Bank under the same terms and conditions for a six-month term.
Pursuant to the policies of the TSX Venture Exchange, the company has agreed to issue 449,250 bonus warrants as consideration for the new loan guarantee.
Each warrant entitles Moppert to purchase one common share of Response at a price of C$0.42 for the term of the loan guarantee, subject to a hold period expiring on May 1, 2006.
The warrants are subject to approval by the TSX Venture Exchange.
Response Biomedical is a biotechnology company based in Vancouver, B.C., that develops diagnostic tests for clinical and environmental applications.
| Issuer: | Response Biomedical Corp.
|
| Issue: | Line of credit
|
| Amount: | $1 million
|
| Maturity: | June 30, 2006
|
| Interest rate: | Prime
|
| Lender: | Toronto-Dominion Bank
|
| Guarantor: | Hans E. Moppert
|
| Announcement date: | Nov. 2
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
