Prospect Park Capital Corp.

June 05, 2015 13:51 ET

Prospect Park Capital Announces Closing of Loan to Above the Fold

TORONTO, ONTARIO--(Marketwired - June 5, 2015) - Prospect Park Capital Corp. ("Prospect Park") (TSX VENTURE:PPK), a public healthcare focused investment corporation, announces the closing of term loan in the principal amount of up to US$100,000 pursuant to a credit agreement with Above the Fold, LLC ("ATF"). The Loan will mature on February 28, 2016 and interest on the principal amount of the loan will accrue at the rate of 12% per annum. ATF is dedicated to supporting families with severe food allergies and will use the proceeds for the purposes of funding its ongoing research and development and for general working purposes.

Samuel Herschkowitz, an officer and director of Prospect Park, and Joshua Kornberg, a director of Prospect Park, are managing members of ATF and each hold 1/3 of the membership interests of ATF, thereby making the Offering a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any common shares issued to or the consideration paid by such person exceeded 25% of Prospect Park's market capitalization.

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. Specifically, this news release contains forward-looking statements regarding ATF's anticipated use of proceeds of the loan; the lending of up to US$100,000 by Prospect Park to ATF; and ATF's ability to repay the outstanding indebtedness under the loan. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Prospect Park believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Prospect Park disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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