MCW Energy Group Limited has entered into a non-binding term sheet for a proposed non-convertible note financing for up to US$4.915 million (the "Proposed Loan"). The Proposed Loan would include interest at a rate of 10% per annum compounded quarterly and payable on the maturity date five years from closing. MCW would grant a security interest to the lender under a general security agreement covering all of the assets of MCW. MCW also anticipates issuing shares to a finder in consideration for introducing the lender to MCW.
In connection with the Proposed Loan, MCW would issue warrants to the lender to purchase up to such number of common shares in the capital of MCW equal to the Canadian Dollar equivalent of the original principal amount of the Proposed Loan divided by $0.65, exercisable at $0.65 per share for a period of five years.