Vancouver, British Columbia--(Newsfile Corp. - August 29, 2018) - Royalty North Partners Ltd. (TSXV: RNP) ("RNP" or the "Company") announces that further to its press release dated February 27, 2018 it has entered into an agreement with RS 2018, LLC to purchase the Company's settlement agreement with Country Wine and Spirits, Inc ("CWS") for US$312,000 ("the Agreement").
Under the settlement agreement dated February 23, 2018, CWS was due to pay RNP US$1,200,000 over a 30 month period. RNP received US$196,000 under the settlement agreement prior to its sale, however under the terms of the settlement agreement, CWS was in default as it had not kept up-to-date with contractually agreed upon payments.
The funds received upon closing of US$312,000 have been used by the Company to reduce indebtedness. The Company now has a balance of approximately C$85,000 remaining on its' line of credit with the Canadian Imperial Bank of Commerce (CIBC), which it expects to be fully repaid during the fourth quarter of 2018. In addition, the Company has in issuance C$6,385,000 of convertible debentures (the "Debentures") carrying an 8% interest rate which fall due on September 8, 2020. The Company will have insufficient cash flows from operations to be able to fully repay the Debentures and as such the Board of Directors are currently exploring potential strategic opportunities in order to be able to repay the Debentures. Such opportunities include, but are not limited to, potentially entering into a loan modification agreement with one or more investees to allow them to buy back all or part of the loans early, the possible sale of one or more of its investment assets, or a financing in the form of debt or equity.
On behalf of the Company,
"Justin Currie"
Chief Executive Officer and Director
About Royalty North Partners Ltd.
Royalty North Partners ("RNP") is a Vancouver, BC based, TSXV-listed company which has, to date, focused on creating a diversified portfolio of cash flowing royalties by providing financing to private businesses with gross revenues in excess of $10 million. RNP has typically invested in companies with stable cash flows in non-resource-based sectors looking for growth/acquisition capital, recapitalization or succession liquidity. In return for the investment, RNP has typically received as consideration a percentage of the future gross sales.
For more information, please contact:
Victoria McMillan, Chief Financial Officer
Royalty North Partners Ltd.
Phone: (604) 628-1033
www.royaltynorth.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
