Marine Growth Ventures, Inc. Purchaes M/V Pacific Aurora For $1.27 Million
Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc. both wholly owned subsidiaries of Marine Growth Ventures, Inc. (Pink Sheets:MGRW) (“MGV”), announced the purchase of the M/V Pacific Aurora, a Canadian flagged vessel (the “Vessel”).
“The acquisition of the M/V Pacific Aurora firmly positions our company in our core business of providing time share at sea,” said Craig Hodgkins, President and Chief Executive Officer of Marine Growth Ventures, Inc. “We expect our marketing of these units to begin in several weeks.”
On March 15, 2007, Marine Growth Canada Ltd. entered into a Sale and Purchase Agreement with British Columbia Discovery Voyages, Inc., T. Jones Enterprises, Inc. and Trevor Jones (collectively the “Sellers”), pursuant to which MGV would purchase the Vessel for an aggregate purchase price of $1,350,000.
In accordance with the Sale and Purchase Agreement, on March 15, 2007, MGV made an initial down payment of $85,000. On March 27, 2007, the balance of the purchase price of $1,265,000 was paid to the sellers and MGV acquired the Pacific Aurora for use in its intended cruise timeshare business operations.
Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc. (collectively, the “Borrower”), wholly owned subsidiaries of MGV, entered into a Loan and Security Agreement with Greystone Business Credit II LLC (“Greystone”) in order to fund the purchase of the M/V Pacific Aurora. Pursuant to the terms of the Loan and Security Agreement, the Borrower issued a Term Note to Greystone in the aggregate principal amount of $1,500,000. The Term Note has a term of two years and bears interest at a rate of 2.25%, plus the prime interest rate.
The Borrower granted a security interest in all of its assets, including the Vessel, to Greystone as security for the financing facility. The Borrower paid a commitment fee of $22,500 and will pay a loan servicing fee of .2% each month based on the outstanding principal of the Term Note.
In addition, the Company executed a Guaranty in favor of Greystone to guaranty the full payment of all obligations due under the Term Note.
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