Channel Ridge Estate Holdings Inc.

Channel Ridge Estate Holdings Inc.

September 04, 2007 15:46 ET

Channel Ridge Announces Extension Of Financing and Loan from Equishare Mortgage Investment Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2007) - Channel Ridge Properties Ltd. ("Channel Ridge"), a wholly-owned subsidiary of Channel Ridge Estate Holdings Inc., is pleased to announce that HSBC Bank Canada has granted a further extension of its financing, previously announced on March 31, 2005, February 8, 2006 and April 5, 2007. The term of Land Loan A and Land Loan B have each been extended from August 31, 2007 to February 29, 2008, under the same terms and conditions. The guarantee of Land Loan A by HSBC Capital (Canada) Inc. has also been extended to February 29, 2008. The fees for this extension total $221,250. In addition, in the event that the guarantee is not repaid or cancelled by February 29, 2008, Channel Ridge must pay a penalty fee of $303,750.

The extension is subject to Channel Ridge completing certain milestones including, raising a total of $10,000,000 in new equity commitments, which will be held in deposit at the Bank and providing the Bank with a financial proposal for the development of Phase 1 of Channel Ridge Village on Salt Spring Island in British Columbia. In the event that Channel Ridge is not able to complete any of the milestones, Channel Ridge intends to enter into an agreement with a top tier real estate group to market Channel Ridge Village.

Channel Ridge also announces that on August 28, 2007, Equishare Mortgage Investment Corporation ("Equishare") granted a loan to Channel Ridge in the principal amount of $10,000,000 with a maturity date of August 31, 2010, of which $4,075,000 has been advanced. Channel Ridge has granted security to Equishare including a collateral mortgage charging the property on Salt Spring Island and a general security interest. The Loan is guaranteed by Channel Ridge Estate Holdings Inc.

Contact Information

  • Channel Ridge Holdings Inc.
    Jim Blaney
    Chairman
    (780) 440-4949