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Spearmint Resources Inc ( (TSE:ADDY) ) has issued an announcement.
Adelayde Exploration Inc., a company listed on the Canadian Securities Exchange, has entered into a loan agreement to borrow $100,000 from an independent lender. The loan, which is unsecured and carries a 10% annual interest rate, is set for a 12-month term but can be repaid earlier if the company raises at least $500,000 through equity or debt financings. Additionally, the lender will receive 2,000,000 share purchase warrants, allowing them to buy shares at $0.05 each over five years. The agreement’s completion is contingent on obtaining necessary approvals, and securities issued will have a statutory hold period.
Spark’s Take on TSE:ADDY Stock
According to Spark, TipRanks’ AI Analyst, TSE:ADDY is a Underperform.
Spearmint Resources Inc. faces significant financial performance challenges, marked by zero revenue and persistent losses. Despite a strong equity position with no debt, declining assets and negative cash flow highlight potential liquidity issues. Technical indicators show stagnant momentum with neutral RSI and overbought Stochastic. Valuation is unattractive due to a negative P/E ratio and no dividend yield. However, the recent acquisition in the tungsten sector is a strategic positive, providing some potential for future growth.
To see Spark’s full report on TSE:ADDY stock, click here.
More about Spearmint Resources Inc
Average Trading Volume: 54,333
Technical Sentiment Signal: Sell
Current Market Cap: C$1.44M
Learn more about ADDY stock on TipRanks’ Stock Analysis page.