LANGLEY, BRITISH COLUMBIA -- (Marketwire) -- 05/15/12 -- Iplayco Corporation Limited (TSX VENTURE: IPC) ("Iplayco" or the "Corporation") announces that it has entered into revolving loan agreements (collectively, the "Loan Agreements") with four of its directors, including the Corporation's Chief Executive Officer and President, and the Corporation's Chief Financial Officer, pursuant to which such directors and officers will lend to the Corporation the aggregate principal amount of $410,000 (collectively, the "Revolving Loans"). The Revolving Loans will bear interest at the rate of 15.0% per annum, are unsecured, mature on January 31, 2013 and can be renewed for additional six-month periods.
Proceeds from the Revolving Loans will be used to repay the Corporation's existing $500,000 operating loan facility with the Royal Bank of Canada (the "Operating Facility") and to provide the Corporation with additional working capital. As of May 15, 2012, the Corporation had drawn $195,000 of the Operating Facility. The Royal Bank of Canada has advised the Corporation that it requires increased security by way of $500,000 in guarantees supported by term deposits and/or mortgage security in order to maintain the Operating Facility. The Corporation has relied on the Operating Facility to fund a significant portion of its working capital requirements. To avoid financial hardship, the Corporation has entered into the Revolving Loan Agreements. The Corporation plans on closing the Operating Facility on or before May 17, 2012.
The Corporation's Board of Directors (the "Board") is composed of six directors, of which three are independent directors and three are members of management, including the Corporation's Chief Executive Officer, President and Executive Vice-President. The Chairman of the Board and the Corporation's Executive Vice-President did not participate in the Revolving Loans. The Board has determined that entering into the Loan Agreements is in the best interest of the Corporation and has unanimously approved the terms of the Revolving Loans, use of the Revolving Loan proceeds and the planned closure of the Operating Facility.
ON BEHALF OF THE BOARD OF DIRECTORS
Scott C. Forbes, President and Director
About Iplayco Corporation Limited
Iplayco designs, manufactures and installs customized indoor and outdoor play structures for children. Iplayco also owns and operates a family entertainment centre ("The Great Escape") in Langley, British Columbia. For more information, please visit www.iplaycoltd.com.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Corporation's business, results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are disclosed elsewhere in documents that are available to the public.
Neither 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.
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