Alkaline Fuel Cell Power Corp said that it struck a credit agreement with Juno Financial Group Corporation for a fixed rate loan of approximately C$800,000.
“We are pleased to be working with Juno with their cleantech experience, and we saw the loan as a more immediate opportunity to fund our current needs, thus postponing our private placement,” AFCP CEO Frank Carnevale said in a statement.
The entire loan amount will be provided to the company immediately and is expected to be used for general corporate purposes, according to AFCP.
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Under the term sheet, the loan matures on February 1, 2028, at an interest rate of 9.51% per annum, calculated daily, compounded monthly and payable monthly in arrears up to and including the maturity date.
Juno and the company have agreed on an amortization schedule for repayment of the Loan based on a term of 60 months.
As continuing collateral security for the obligations of the company under the credit agreement, the company is required to collateralize certain assets, including the CHP assets, AFCP said.
Additionally, AFCP said it did not proceed with the closing of the private placement previously announced on December 16, 2022.
AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech.
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