My Health Logic Announces Debt Financing
CALGARY, AB, Sept. 8, 2021 /CNW/ - Health Logic Interactive Inc. ("Health Logic" or the "Company") (TSXV: CHIP.H) (OTCPK: CHYPF) is pleased to announce today that its wholly-owned operating subsidiary, My Health Logic Inc., ("My Health Logic" or the "Subsidiary") has received a short-term loan of $585,000 CAD (the "Loan") in the form of unsecured promissory notes (the "Notes") from BWL Investments Ltd. ("BWL Investments"), an insider of the Company, and two arm's-length third party investor (together with BWL Investments, the "Lenders").
The Notes are unsecured, bear interest at a rate of nine percent (9%) per annum and mature on August 12, 2022. My Health Logic may at any time repay some or all of the Loan (without prepayment charges or penalty of any kind) by providing prior notice of the prepayment to the Lenders.
The Loan is expected to be used for the continued development of the My Health Logic's lab-on-chip and MATLOC products, along with software development costs, regulatory costs for an expected United States Federal and Drug submission (the "FDA Submission") and to fund the working capital of My Health Logic.
Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Loan will constitute a "related party transaction" as Mr. Braeden Lichti controls BWL Investments and beneficially exercises control or direction of greater than 10% of the common shares of the Company. The Company has relied on exemptions from the formal valuation and minority approval requirements of MI 61-101 (pursuant to subsections 5.5(a) and 5.7(a)) as the fair market value of the consideration received from BWL Investments will not exceed 25% of the Company's market capitalization. The Loan has been approved by all of the directors of the Company and the Subsidiary.
About the Company
Health Logic Interactive, through its wholly owned operating subsidiary My Health Logic, is developing and commercializing consumer focused handheld point-of-care diagnostic devices that connect to patient's smartphones and digital continued care platforms. The Company plans to use their patent pending lab-on-chip technology to provide rapid results and facilitate the transfer of that data from the diagnostic device to the patient's smartphone. The Company expects this data collection will allow it to better assess patient risk profiles and provide better patient outcomes. Our mission is to empower people with the ability to get early detection anytime, anywhere with actionable digital management for chronic kidney disease. For more information visit us at: www.healthlogicinteractive.com.
Further information regarding Health Logic Interactive Inc. and its disclosure documents are available on SEDAR at www.sedar.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.
Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Loan, including the use intended purpose of the Loan and its repayment schedule, the completion of the FDA Submission, and the Company's strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's Management's Discussion and Analysis for the year ended December 31, 2020. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
SOURCE Health Logic Interactive Inc.
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