TORONTO, ON--(Marketwired - July 04, 2016) - Due to the rapid organic growth of Distinct Infrastructure Group Inc.'s ("Distinct" or the "Company") (TSX VENTURE: DUG) core business, which has surpassed the expectations of the Company and of Crown Capital Fund IV LP ("Crown"), Distinct and Crown found it necessary to amend certain terms of the $20 million acquisition line (the "Loan"), as previously announced in the Company's press release dated November 25, 2015.
Pursuant to an amending agreement dated June 30, 2016 (the "Amending Agreement") certain financial covenants were amended and the interest rate was adjusted such that it will range between 10% to 12%. In consideration for the amendments, the Company has agreed, subject to regulatory approval, to issue an aggregate of 2 million common shares at a price of $0.125 per share to Crown.
Joe Lanni and Alex Agius, Co-Chief Executive Officers of Distinct stated, "We are pleased to have Crown as our partner and to be working with them as the Company continues to grow its core business. The Loan gave the Company the necessary financial resources to finance its growth, which has positioned the Company to continue its rapid growth. The amendment to the Loan has given Distinct the financial flexibility to manage its growth so that it will the financial resources in place to take advantage of the unprecedented amount of capital expenditures being undertaken by Canada's telecom companies
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Forward Looking Statements
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