The Good Flour Corp. Announces Loan

Rhea-AI Summary

The Good Flour Corp. (CSE: GFCO, OTC Pink: GFCOF, FSE: 3KZ) has amended its loan agreement with an arm's-length lender. The amended agreement allows the company to borrow up to $500,000 in requested drawdowns. These loans will bear an annual interest rate of 10%, be unsecured, and mature on September 8, 2024. The facility is non-revolving, and the borrowed funds will be used for general corporate and working capital purposes.

Additionally, The Good Flour Corp. has agreed to issue up to 1,785,700 share purchase warrants to the lender. Each warrant can be converted into one class "A" common share at $0.14 per share until March 15, 2029. This brings the total number of share purchase warrants issued under the loan to 3,571,400.

Positive

• The company can borrow up to $500,000 for corporate and working capital purposes.
• The share purchase warrants can be exercised at $0.14 per share, potentially providing additional capital.

Negative

• The loans bear a high interest rate of 10% per annum.
• The loans are unsecured, increasing financial risk.
• The issuance of 3,571,400 share purchase warrants could lead to potential dilution of existing shares.

Vancouver, British Columbia--(Newsfile Corp. - July 5, 2024) - The Good Flour Corp. (CSE: GFCO) (OTC Pink: GFCOF) (FSE: 3KZ) ("GFCO" or the "Company") announces that it has amended the loan agreement (the " Loan Agreement") with an arm's-length lender (the "Lender"), originally announced on March 8, 2024, to increase the principal amount the Company may borrow to up to $500,000 in requested drawdowns, from time to time (each advance, a "Loan"). The Loans advanced will bear interest at a rate of 10% per annum and are unsecured, and have a maturity date of September 8, 2024.

The facility is non-revolving. The Company intends to use any funds advanced as Loans for general corporate and working capital purposes. In connection with making the loan facility available, the Company has agreed to issue up to an additional aggregate of 1,785,700 share purchase warrants (each, a "Bonus Warrant") to the Lender, with such Bonus Warrants vesting on a pro rata basis upon advance of each Loan pursuant to the Loan Agreement. Each Bonus Warrant will be exercisable into one (1) class "A" common share (each, a "Bonus Warrant Share") at a price of $0.14 per Bonus Warrant Share until March 15, 2029. The total Bonus Warrants issued under the Loan are 3,571,400.

About The Good Flour Corp.

For additional information on The Good Flour Corp. please refer to www.goodflour.co.

Company Contact

investors@goodflour.co
604-423-4400

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated developments and events related to GFCO that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, the terms of the Loan and the use of proceeds from the Loan.

In certain cases, forward-looking information can be identified by the use of words such as "expects", "intends", "anticipates" or variations of such words or state that certain actions, events or results "may", "would", or "might" suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, the timely receipt of regulatory approvals and the Company's working capital expectations will be met. While GFCO considers these assumptions to be reasonable, they may be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business uncertainties; the sufficiency of our cash to meet liquidity needs; risks associated with supply chain for machinery and equipment; regulatory, political and competitive developments; failure to attract, maintain and expand relationships with key restaurant and food service partners; changing consumer taste preferences; delay or failure to receive regulatory approvals; failure to attract qualified personnel and the additional risks identified in the "Risk Factors" section of GFCO's filings with applicable Canadian securities regulators.

Although GFCO has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, GFCO does not undertake any obligation to publicly update forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215590

FAQ

What is the principal amount The Good Flour Corp. can borrow under the amended loan agreement?

The Good Flour Corp. can borrow up to $500,000 in requested drawdowns.

What is the interest rate on The Good Flour Corp.'s loans under the new agreement?

The loans will bear interest at a rate of 10% per annum.

What is the maturity date of the loans for The Good Flour Corp.?

The loans will mature on September 8, 2024.

What is the share conversion rate for the Bonus Warrants issued by The Good Flour Corp.?

Each Bonus Warrant is exercisable into one class "A" common share at $0.14 per share.

How many share purchase warrants has The Good Flour Corp. issued under the loan agreement?

The Good Flour Corp. has issued a total of 3,571,400 share purchase warrants.