Selway Capital Acquisition Corp signs loan agreement with Partners for Growth III LP
Selway Capital Acquisition Corporation announced that the company and three of its subsidiaries, Prescription Corporation of America, Healthcare Corporation of America and PCA Benefits Inc., signed a loan and security agreement. Selway filed a Form 8-K with the US Securities and Exchange Commission which includes the detailed description of the loan and security agreement.
The agreement is for a five year convertible loan worth US$5 million from Partners for Growth III L.P. The loan is convertible into Series C common stock at an initial rate of 8.00 a share. Based on the agreement terms, the interest on the loan will be payable with an interest rate of 5.25% per annum. The interest rate is subject to a rate reduction that will be based on certain market conditions.
Selway Capital Acquisition Corporation is a newly formed publicly-traded company with the purpose of merging with an operating business. Selway's goal is to merge with businesses with profitability, scale and growth potential to be a successful, publicly-traded company.