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Toronto, Ontario--(Newsfile Corp. - August 23, 2024) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF) (the "Company"), a software leader in media asset workflow solutions for the advertising and entertainment industries, today announced that it has executed an amending agreement (the "Amendment") to its existing loan agreement (the "Loan Agreement") dated April 20, 2021, as amended in December 2022 and again in December 2023, with National Bank of Canada ("NBC") related to all credit facilities of the Company held with NBC, including a term loan (the "Term Loan").
In a news release dated July 19, 2024, the Company had announced its non-compliance with the terms of the Term Loan and its engagement in discussions with NBC to obtain a waiver of the non-compliance related to certain financial covenants by means of an amendment to the terms of the Loan Agreement, which has now been completed by the execution of the Amendment.
Under the terms of the Amendment, in addition to the amendment of certain of the financial covenants, the term of the Term Loan has been extended and will expire on June 26, 2025.
The Amendment is part of Yangaroo's ongoing efforts to manage its financial obligations and improve its financial position. The Company remains committed to meeting its covenants and strengthening its financial performance.
The Amendment contains certain conditions, including a requirement that each holder of the unsecured convertible debentures issued by the Company in December 2022 (the "Debentures") execute an amended and restated assignment, subordination and postponement agreement (each a "Subordination Agreement", collectively the "Subordination Agreements") in favour of NBC with respect to the Debentures until any and all amounts owing by Yangaroo to NBC are repaid and each Subordination Agreement is terminated by NBC. Whereas previously the holders of Debentures were entitled to receive semi-annual interest payments, despite there being no amendment to the Debentures, the holders of the Debentures have agreed to waive their right to receive interest payments while the Subordination Agreements remain in effect.
About YANGAROO:
Yangaroo is a software leader in media asset workflow and distribution solutions for the advertising, music, and awards industries. YANGAROO's patented Digital Media Distribution System is a leading secure business-to-business cloud-based solution that incorporates production services, traffic, clearance, delivery, analytics, and secure API integration for the industry's various video and audio workflow challenges.