Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc said it has entered into a definitive agreement for a $500,000 revolving loan, carrying an interest rate of 12% per annum, with B&M Miller Equity Holdings Inc. and Zacorp Ventures Inc.
The loan is for a term of 18 months with interest payable at the end of the term, the company said, adding that the loan is secured against the assets of the corporation, and contains certain other customary financial and other covenants.
The loan will be used for general working capital purposes, it added.
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“In addition, the corporation will pay a standby fee of 2.5% on the unused portion of the loan calculated on a daily basis as being the difference between: the full loan amount; and the aggregate outstanding principal amount under the loan, which standby fee will be payable on the earlier of the date of any repayment under the loan agreement; and the maturity date,” the company said in a statement.
Both lenders are an insider of the corporation with B&M Miller Equity Holdings Inc being a holding company controlled by Brad Miller, a director of the corporation and the corporation's largest shareholder; and Zacorp Ventures Inc being a holding company controlled by Constantine Zachos, a director of the corporation.
Cloud DX's connected health remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care in the home.
Contact the author at jon.hopkins@proactiveinvestors.com