UrtheCast announced the acquisition (the Geosys Acquisition) of Geosys Technology Holding LLC (Geosys) from Land O' Lakes Inc. (Land O'Lakes). The indirectly wholly-owned subsidiary of UrtheCast that acquired Geosys (the Borrower) has entered into a USD 12 million term loan with a group of lenders led by Bolzano Investments Limited (Bolzano) and 1112099 B.C. Ltd. (1112099). The Term Loan (i) accrues interest at a rate of 14% per annum; (ii) has a maturity date of one year; and (iii) is secured by all of the Geosys assets owned by the Borrower. The proceeds of the Term Loan will be used as follows: (i) repay existing debt (including, as required by the lenders, the previously issued demand promissory note dated September 28, 2018 issued by UrtheCast in favour of 1112099 in the principal amount of USD 5 million (the Existing Note); (ii) fund the first installment for the Geosys Acquisition; and (iii) for general corporate purposes. Approximately USD 7.7 million of the Term Loan was advanced now, with approximately USD 5 million used to repay the Existing Note and USD 2.5 million used to fund the first installment for the Geosys Acquisition. The balance of the Term Loan will be advanced upon the satisfaction of certain conditions required by the lenders, including the completion of definitive documentation relating to the security of the Term Loan and the lenders' conditions described above, which is expected to occur on or about January 18, 2019.

In satisfaction of conditions required by the lenders, Bolzano has appointed Mr. Pirmin Lüönd as a director of UrtheCast pursuant to a board appointment right granted by UrtheCast to Bolzano, subject to customary approval from the Toronto Stock Exchange (the TSX). Mr. Lüönd held various managerial positions at leading European banks such as Credit Suisse AG for more than 15 years, primarily focused around wealth management for ultra high net worth clients. Since 2012, he has been focusing his efforts on private equity investment opportunities across industries and jurisdictions.