Flow Capital Corp. announced that it has entered into a loan transaction with certain third party lenders pursuant to which the lenders will advance the aggregate amount of CAD 17.9 million to the Company (the "Loans"). The Loans will be evidenced by unsecured, non-convertible debentures (the "Debentures") issued by the Company to the Lenders pursuant to the terms of a debenture indenture entered into between the Company and Olympia Trust Company, as debenture trustee.

The Debentures will be issued in multiple series bearing interest at varying floating rates, with a minimum rate of 7% and a maximum rate of 12.5% based on the applicable series of Debentures, and will mature on August 1,43 (the "Maturity Date"), subject to earlier redemption or retraction in certain circumstances. The Debentures are unsecured, non-voting and carry no right to participate in the earnings of the Company. No portion of the principal or interest outstanding under the Debentures may be repaid in securities of the Company.

The net proceeds of the Loans will be used by the Company to repay existing indebtedness, fund investments and for general corporate purposes.