Kadestone Capital Corp. announced that, further to its news release dated May 2, 2022, the company has entered into an amended and restated loan agreement with the Zhang Family (2015) Trust (the Lender) (the Restated Loan Agreement), which becomes effective as of May 1, 2024 and amends and restates the term loan previously provided by the Lender to the company by way of an unsecured, non-revolving credit facility (the Loan). The aggregate amount of the Loan has increased from $10,000,000 to $10,973,540, which includes $973,540 of accrued interest, and has been extended to May 1, 2028 (the Maturity Date).

The Loan bears interest at a rate equal to 9% per annum from May 1, 2024 until April 30, 2025, a rate equal to 11% per annum from May 1, 2025 until April 30, 2026, a rate equal to 13% per annum from May 1, 2026 until April 30, 2027 and a rate equal to 15% from May 1, 2027 to April 30, 2028. The outstanding principal amount of the Loan, together with unpaid and accrued interest thereon, is payable in full at the Maturity Date. Scheduled principal payments of $250,000 are payable to the Lender on the last business day of each fiscal quarter.

The Restated Loan Agreement provides the Lender with equity participation rights and a right of first offer with respect to the financing of future real estate development projects. The other terms of the original loan agreement remain unchanged.