Alkaline Fuel Cell Power entered into a credit agreement with Juno Financial Group for a fixed rate loan with a gross amount of approximately C$800,000 ($596,160). The entire loan amount will be provided to Alkaline Fuel Cell Power immediately and is expected to be used for general corporate purposes.
“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,” Frank Carnevale, CEO of Alkaline Fuel Cell Power, said.
The loan is repayable in full on Feb, 1, 2028, and the loan’s principal amount carries 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 Financial Group and Alkaline Fuel Cell Power 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 Alkaline Fuel Cell Power under the credit agreement, the company is required to collateralize certain of its assets, including CHP assets.
