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Global Capital’s primary market is small-cap Canadian companies, either privately-owned or listed on the TSX Venture Exchange or the Toronto Stock Exchange. These companies typically require relatively small ($300,000 to $3.0 million) short-term secured bridge loans. The Company provides loans to a wide range of companies in a number of industries, including oil and gas, mining, real estate, manufacturing, retail, financial services, technology, and biotechnology. For these secured bridge loans, Global Capital is provided with a structuring fee, monthly interest income and an “equity kicker” in the form of common shares, warrants or conversion options in the security instrument issued by the borrowing company.
Lending Parameters:
| Principle amount |
$300,000 to $3,000,000 |
| Term |
1 month to 12 months |
| Interest rate |
1% per month (12.68% per annum) |
| Bonus |
5% to 20% of the value of the principal in an equity bonus in the form of shares, warrants or conversion options |
| Security |
marketable securities, hard assets or personal guarantees |
| Legal Fees |
borrower pays Global Capital’s legal costs |
| Structuring Fees |
1% to 2% of value of the principal |
| Repayment |
satisfactory repayment strategy |
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