Purpose: General working capital and corporate purposes as the Board of INTI considers appropriate to meet its legal and regulatory requirements, payment of the outstanding accounts payable and the transaction costs listed on Schedule 1 hereto, and payment of other outstanding accounts payable as approved in writing by Lender acting in its sole and absolute discretion (and in any event, excluding already outstanding general and corporate legal fees).
Initial Minimum Draw: USD25,000 on written request by INTI.
Maturity: 24 months from first drawdown.
Payment Terms: One twelve (12) month repayment free advance period from the first drawdown. Each advance against the Facility will be amortized over twelve (12) equal monthly payments of principal plus interest respectively. Payments on the Facility shall be made in arrears in USD on the due date and in freely transferable same day funds.
Interest Rate: The payment on this Facility shall be calculated using an interest rate tied to the US Bank Prime Rate (Benchmark Rate). The Interest Rate quoted in this Proposal shall be equal to the sum of 500 basis points plus the Benchmark Rate. The Interest Rate shall be adjusted for each draw in accordance with changes in the monthly average of the US Bank Prime Rate, as reported in the Federal Reserve Statistical Release H .15 for the month preceding the week in which the Company shall make a draw against the Facility.
Rate Adjustment: Not applicable.
Prepayment / Early Termination: No premium is payable in the event that Borrower pays all principal, interest and other outstanding amounts due to Lender prior to the maturity date.
Terminal Payment: Not applicable
Financial Covenants: None
Personal Guarantees: None
Negative Covenants: Without prior written consent, Borrower will not:
1) Pledge or otherwise encumber assets (including its intellectual property) except for liens on specific equipment to secure financing incurred to purchase such equipment.
2) Enter into additional borrowings or guarantees, except for trade debt and capital lease obligations (not to exceed USD50,000) incurred in the ordinary course of business.
3) Repurchase capital stock, except as required under employment agreements or as disclosed per public filing plan.
4) Enter into mergers or acquisitions.
5) Pay cash dividends, make loans to shareholders or other parties, or make investments in other entities.
Without limiting the foregoing, Borrower may consider a range of transactions to remain a going concern without obtaining prior written consent from Mayne Pharma.
Takedown Period: The Facility will be available for drawdown for a period of nine (9) months from 10 December 2020, or until the facility is fully drawn subject to Borrowers compliance with financial covenants and availability, as applicable. No draw will be less than USD25,000.