CoTec Holdings Corp. Announces Partial Settlement and Amendment and Restatement of Convertible Loan Facilities

CoTec Holdings Corp. has announced a partial settlement of its outstanding convertible loan facilities. The company is repaying $2.6 million in principal, which includes $2.0 million drawn on December 18, 2025, $200,000 on December 22, 2025, and $400,000 on January 29, 2026. This repayment is being made in full by issuing 2,260,869 common shares to the lenders at a conversion price of $1.15 per share. In addition to the settlement, CoTec and its lenders have agreed to amend and restate the terms of the remaining $4,000,000 principal amount of the Convertible Loans. Under the new terms, Kings Chapel International Limited and Epic Capital Management Inc. will provide loans of up to $3,000,000 and $1,000,000, respectively. The corporation is entitled to draw upon these funds until June 12, 2026. The outstanding principal amount will bear interest at an annual rate of 10% and be repayable on December 31, 2028. The undrawn principal amounts also bear a standby fee of 2.5% per annum. The corporation's obligations under these loans are unsecured. As consideration for the new loans, the corporation will issue non-transferrable warrants to the lenders concurrent with each draw. The issuance of securities is subject to TSXV approvals and a four-month plus one-day statutory hold period. The transaction with Kings Chapel is a related party transaction subject to Multilateral Instrument 61-101 and is exempt from certain valuation and approval requirements. Early warning disclosure indicates that Kings Chapel and its director, Julian Treger, own significant stakes in the corporation. The proceeds from the amended loans will be used for general working capital purposes.

(Source：Investing News Network (inn))