Search the web
Welcome, Guest
[Sign Out, My Account]

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
MEIL > SEC Filings for MEIL > Form 8-K on 20-Aug-2013All Recent SEC Filings




Creation of a Direct Financial Obligation or an Obligation unde

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On August 16, 2013, Methes Energies Canada, Inc. ("Methes Canada"), a wholly-owned subsidiary of Methes Energies International Ltd., a Nevada corporation (NASDAQ: MEIL) (the "Company"), entered into and closed on a working capital loan facility from a Toronto, Ontario lending firm (the "Working Capital Facility"). Under the Working Capital Facility, Methes Canada may borrow up to $1,500,000 for its Sombra, Ontario biodiesel manufacturing plant, of which up to $750,000 may be from cash advances against Methes Canada's accounts receivables and up to an additional $750,000 in cash advances for use exclusively to purchase feedstock for the production of biodiesel.

In connection with all borrowings to purchase feedstock, Methes Canada issued a promissory note to the lender bearing a per annum interest rate equal to the Bank of Montreal Prime Rate plus sixteen percent (16%) and is due and payable upon the earlier of demand or August 13, 2014. Under the terms of the promissory note, interest only is payable monthly on the last business day of each calendar month. Cash advances against accounts receivables will be based on the amount of the receivables net of a Purchase Discount as described in Schedule B of the Master Factoring Agreement attached as Exhibit 10.1 to this Current Report on Form 8-K.

The Working Capital Facility is secured by a pledge of the assets of the Company and Methes Energies USA Ltd., a wholly-owned subsidiary of the Company. Amounts outstanding under the Feedstock Facility

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of Exhibits 4.1 and 10.1 through 10.3, filed with this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Number     Description
  4.1      Demand Grid Promissory Note issued to BridgingFactor Inc. dated August
           13, 2013.
  10.1     Master Factoring Agreement between Methes Energies Canada, Inc. and
           BridgingFactor Inc. dated August 13, 2013.
  10.2     Security Agreement, dated August 13, 2013, between Methes Energies
           International Ltd. and BridgingFactor Inc.
  10.3     Security Agreement, dated August 13, 2013, between Methes Energies USA
           Ltd. and BridgingFactor Inc.
  99.1     Press release dated August 16, 2013 announcing the Working Capital

  Add MEIL to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for MEIL - All Recent SEC Filings
Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.