ZG Ventures Amends ePals Financing
ePals announced that its wholly owned subsidiary ePals amended the terms of its existing revolving promissory note with ZG Ventures and an affiliate of ZG.
Under the prior terms of the note, ePals was entitled to borrow up to a maximum of $3 million, and payment of all outstanding principal and interest was due December 31, 2013. The note was amended to extend the repayment date to June 30, 2014 and reduce the amount that may be borrowed and outstanding from time to time to a maximum of $1.5 million. All other terms of the note remain unchanged including that interest accrues on any unpaid balance at a rate of one percent (1.00%) per annum.
The amendment to the loan described above is not subject to the valuation requirement of Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions and is exempt from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in §5.7(1)(f) of MI 61-101.
ePals is an education media company and a leading Global Learning Network.