Victoria, British Columbia--(Newsfile Corp. - January 3, 2024) - ALUULA Composites Inc. (TSXV: AUUA) (the "Company" or "ALUULA") announces that its wholly owned subsidiary, Aluula Composites Canada Inc., has entered into a short-term loan for $1,000,000 (the "Loan") from a non-arm's length party (the "Lender"). The Loan has an interest rate of 12% per annum and is due and payable on July 1, 2024. The Company intends to use the proceeds of the Loan for general working capital and corporate purposes.
The Lender is a related party to ALUULA and the Loan constitutes a 'related party transaction' pursuant to Multi-Lateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").The Company is relying on the exemptions from the formal valuation requirements contained in section 5.5(a) of MI 61-101 and the minority shareholder approval requirements contained in section 5.7(1)(a) of MI 61-101, as the Loan does not exceed 25% of the Company's market capitalization, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Loan as the Loan was carried out on an expediated basis.
About ALUULA Composites
ALUULA Composites Inc. (TSXV: AUUA) is a new class of composite materials built from components with eight times the strength-to-weight ratio of steel, and yet lighter than nylon, polyester or aramid. Using a patented and proprietary approach to increase fiber strength at the molecular level, ALUULA core weaves and outer facing films are fused without the use of heavy glues. This remarkable process allows ALUULA to achieve strength to weight ratio materials that have been previously unachievable. The Company continues to add patented innovation to its product offerings and specialized core competencies to its growing team.
Partnering with world-class brands, ALUULA Composites Inc. is quickly becoming the top choice for innovators seeking to set a new standard of high-performance.
ALUULA is a Canadian company founded by a team of highly experienced chemists and engineers who share a common passion for exploring and enjoying the outdoors. They have created a new realm in dimensionally stabilized multilayer materials that are the result of an innovative bonding of co-polymer layers, creating composites which are extremely light, highly tear and stretch resistant, and are easily fabricated into a multitude of products across a wide range of markets. ALUULA strives to develop products and processes that are not hazardous to our environment and minimize the footprint we leave behind.
Learn more about ALUULA Composites Inc. at: www.aluula.com.
Contact:
Richard Myerscough, CEO
1-888-724-2470
ceo@aluula.com
TSX Venture Exchange
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
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. These statements are based upon assumptions that are subject to significant risks and uncertainties as described in the Company's management discussion and analysis. Forward-looking statements in this news release relate, but are not limited to, the use of funds from the Loan. Because of these risks and uncertainties and as a result of a variety of factors, including the timing and receipt of all applicable regulatory, corporate and third party approvals, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/193061
SOURCE: ALUULA Composites Inc.
