SCOTTSDALE, Ariz., July 5, 2016 /PRNewswire/ -- Alanco Technologies, Inc. (OTCQB: ALAN) announced today the signing of a Loan Agreement with a $500,000 credit limit with the Anderson Family Trust, an entity controlled by Mr. Donald Anderson, a former director and longtime supporter of the company.
The loan has an interest rate of 7% per annum based on the outstanding balance. In addition, the Anderson Family Trust receives a loan fee of $10,000 plus a warrant to purchase 140,000 shares of Alanco Common Stock with 20,000 shares vesting immediately plus an additional 10,000 shares vesting for each month the credit line has an outstanding balance. The exercise price per share is $0.50 per share for one half of each vested group and $1.00 per share for the other half of each vested group. The credit line is secured by a portion of Alanco's waste management assets that are presented as held for sale.