September 28, 2016
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp
Group”) announced today that it has closed a $5 Million USD unsecured loan facility. The loan
facility bears interest at a rate of 8% per annum and matures on April 7, 2017. In connection
with the loan facility, the lender was issued share purchase warrants totalling 30,714,118
warrants to purchase common shares exercisable at a price of $0.07 per common share for a
period of 24 months from issuance. The lender is a non-arm’s length party to the Corporation.
The proceeds of the loan will be for working capital at the Corporation’s Delta, B.C. and Gardena,
California facilities.