Press release from TheNewswire.ca
Loyalist Group Announces $500,000 Loan Financing With Windsor Bancorp to Advance Acquisition Strategy
Thursday, January 19, 2012
Loyalist Group Announces $500,000 Loan Financing With Windsor Bancorp to Advance Acquisition Strategy 14:52 EST Thursday, January 19, 2012(via Thenewswire.ca) Toronto, Canada - January 19th 2011 - Loyalist Group Limited (TSX Venture Exchange: LOY) ("Loyalist" or the "Corporation") an emerging consolidator of private ESL schools, is pleased to announce that it has secured a loan to fund its recent growth initiatives and working capital. The Corporation has entered into an arrangement (the "Agreement") with Windsor Bancorp Limited Partnership ("Windsor") whereby Windsor will advance $500,000 (the "Loan") to Loyalist. Under the Agreement terms, the Loan will bear an annum interest rate that is prime rate charged by the Royal Bank of Canada plus 10%. The term of the Loan will be for 12 months and can be prepaid with no penalty. In addition, Loyalist will issue 900,000 bonus warrants (the "Warrants") to Windsor. Each Warrant will be exercisable at a price of $0.15 per common share for a period of 12 months. The closing of the Loan is conditional on the execution of a loan agreement and the regulatory approval for the issuance of the Warrants. In addition, Loyalist has negotiated a share for debt settlement with two creditors. The Company has agreed to issue an aggregate of 269,091 common shares to one arm's length party and a Director of the Corporation in exchange for the cancellation of an aggregate of $29,600 in debt owing to the creditors. The debt owing to the Director totals $7,000 and will be satisfied through the issuance of an aggregate of 63,636 common shares. The debt was incurred prior to the individual becoming a Director. The common shares are being issued at a deemed price of $0.11 per common share. The debt settlement is subject to approval of the TSX Venture Exchange. Andrew Ryu, CEO of Loyalist, commented "We are pleased with the direction this relationship enables us to take; partnering with Windsor for this initial debt facility has positioned us well to expand our growth and roll-up strategy." About Loyalist Group Limited Listed on the TSX Venture since January 5th 2011, Loyalist Group Limited (TSXV: LOY) owns and operates private education schools both in Toronto and Vancouver offering (i) English as a Second Language Courses for international students; (ii) Training programs for teachers, commonly known as TESL; (iii) Professional Development Courses; and (iv) Corporate English for Professionals. To receive corporate news updates send your email to email@example.com and mention 'Loyalist News' on the subject line. For further information, please contact: To receive news updates send your email to firstname.lastname@example.org and mention 'Loyalist News' on the subject line. ------------------------------------------------------------------ |Andrew Ryu |Cathy Hume |Lauren Clarke | | |Loyalist Group |CHF Investor Relations|CHF Investor | | |Limited |CEO |Relations | | |CEO |T: (416) 868-1079 x231|IR Associate | | |T: (416) 977-9800 |E: email@example.com |T: (416) 868-1079| | |E: | |x241 | | |firstname.lastname@example.org| |E: | | | | |email@example.com | | ------------------------------------------------------------------ Neither the 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. Forward-Looking Statements The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and Loyalist Group Limited disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein. Copyright (c) 2012 Thenewswire.ca - All rights reserved.