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Kamloops, BC – TheNewswire - January 20, 2026 Comet Industries Ltd. (“Comet” or the “Company”) announces that it has entered into a secured, non-revolving term loan agreement with a syndicate of four private lenders, pursuant to which the Company has received a loan (the “Loan”) in the principal amount of CAD$2,000,000 to support construction and development activities related to the Company’s Iron Mask project in Kamloops, British Columbia (the “Iron Mask Project”).
The Loan is a one-year term loan bearing interest at a rate of 10% per annum, calculated semi-annually not in advance, with monthly interest only payments and a maturity date of January 9, 2027. A commitment fee of $20,000 has been added to the principal amount outstanding and accrues interest at the same rate as the Loan. The Loan may be prepaid in full prior to maturity, subject to payment of all interest that would otherwise accrue over the full term and the commitment fee.
Proceeds of the Loan are restricted to:
I. completion of environmental remediation work and obtaining a Certificate of Compliance from the Ministry of Environment and Parks;
II. payment of trade creditors, contractors, subcontractors, and material suppliers in connection with the subdivision and related construction activities.
All lenders are arm’s-length parties, and the transaction does not constitute a related-party transaction under applicable securities laws.
The Loan is secured by a first-ranking mortgage over the lands comprising the Company’s Kamloops subdivision project, together with an assignment of rents, an assignment of Project documentation, and a first-ranking general security agreement over all personal property related to the project, with security registered pursuant to the Personal Property Security Act (British Columbia).
The Company is in a position to service the monthly interest payments owing under the Loan as they come due and anticipates repaying the principal amount owing under the Loan using proceeds generated from the sale of lots in Phase 1 of the Iron Mask Project.
The Loan will not be convertible into the Company’s securities without prior approval from the TSX Venture Exchange. Other than the commitment fee set out above, no bonus securities of the Company, finder’s fee, and/or any other type of compensation will be provided to the lenders for the loan.
“This financing provides Comet with the necessary capital to advance Phase 1 of the subdivision while addressing environmental obligations and settling outstanding trade accounts,” said management of Comet. “The structure allows the Company to move forward efficiently with critical project milestones while preserving flexibility in a challenging capital markets environment.”
said Mike O’Reilly, President and CEO of Comet.
Comet Industries Ltd. was established in 1972, incorporated in the Province of British Columbia, and is listed on the TSX Venture Exchange. The Company is in the business of holding and developing real estate properties, all in British Columbia (“BC”). The Company owns unimproved land in Kamloops and Nelson Island on a freehold basis. A major initiative by the company is the Iron Mask Industrial Park project. Visit: https://www.cometindustries.ca/
LinkedIn: https://www.linkedin.com/company/cometindustries/about/?viewAsMember=true YouTube: https://www.youtube.com/channel/UCCx-su56OLxOiMx_NtaG4zg
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LinkedIn: https://www.linkedin.com/company/iron-mask-industrial-park/about/?viewAsMember=true
"Michael O'Reilly"
COMET INDUSTRIES LTD.
Michael O'Reilly President and CEO
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE
This news release contains certain “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the intended use of proceeds of the Loan, the completion of environmental remediation and receipt of a Certificate of Compliance, the advancement and timing of the Company’s subdivision and development activities, repayment of the Loan from project proceeds, and the Company’s ability to obtain future financing on acceptable terms.
Forward-looking information is based on management’s reasonable assumptions, expectations, and estimates as of the date of this news release, including assumptions regarding regulatory approvals, construction timelines, costs, availability of contractors, market conditions, and the Company’s ability to meet its obligations under the Loan. Such forward-looking information is subject to a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied, including but not limited to delays in construction or permitting, cost overruns, changes in regulatory requirements, adverse market conditions, and general economic, financial, and operational risks.
Readers are cautioned not to place undue reliance on forward-looking information. Except as required by applicable securities laws, the Company does not undertake to update or revise any forward-looking information to reflect new events or circumstances.
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