• stock price
cover pic

Loan Agreement Status

December 4, 2017 – On July 17, 2017, Halio Energy Inc. (“Halio Energy” or the “Company”) (TSXV – HOIL) entered into a Loan Agreement and Demand Promissory Note with Halio Holdings International, Inc. (“International”) in the amount of $171,205.44 USD, The Loan Agreement and Promissory Note matured on October 30, 2017. The Promissory Note also provides for additional future advances to Halio Energy, subject to the terms and provisions of the aforementioned Agreements, which advances may be made solely at the discretion of International and provides for modification of the due date. The note bears interest at 8% percent per year payable annually in arrears. As security for the Loan, Halio Energy pledged the Farm-in agreement between Halio Energy and Trendwell West Inc.
Subsequent to the initial advance International has advanced an additional $ 33,544.56 USD or a total of $204,750 USD and $16,000 CDN. The last advance was made on October 31, 2017.
While Halio Energy is in default for repayment of the loan Halio Holdings, has not called the loan. Halio Energy is in the process of seeking revision of the due date to permit additional and a more favourable due date. Failure to achieve such modification could result in a International’s foreclosure, In addition, failure to achieve said due date extension revision could materially and adversely impact Halio Energy’s ability to attract the financing to fund it’s obligations under the Trendwell Farm-in Agreement. However, Halio Energy cannot give assurance that such revisions will be agreed to by International. Halio Energy currently no sources of revenue or access to cash.
Halio Energy is currently in discussions with a number of groups in order to obtain sufficient funding to satisfy current and future financial obligations relating to the Company’s obligations under the aforementioned Farm-in agreement, current operating costs and expenses and funds to pay the principle and interest relating to the aforementioned mentioned Loan Agreement & Demand Promissory Note, as well as additional financing to develop the farm-in acreage specified in the Farm-in agreement. Halio Energy, presently, has no revenue sources. Repayment of the loan referenced above on the specified maturity date, is, at this time, entirely dependent on the successful results of future capital raise efforts.