KGIC Inc. announced that it has received a firm commitment from a third party lender for a proposed secured loan in the aggregate amount of up to $9.725 million. Funding of the loan is conditional on the company completing its previously announced capital restructuring and debt settlement plan on or before October 31, 2016. The loan will be comprised of a $7.5 million short-term loan that will be used to retire the debt that remains owing to the company's senior lender, Bank of Montreal, following the implementation of the debt settlement plan, with the remainder of the loan to be used for working capital purposes. The term facility will bear interest at a rate of 12% per annum and will be repayable 6 months following the date of advance. The working capital facility will bear interest at a rate of 5% per annum and will be repayable 12 months following the date of advance. In addition, the lender will have the option to convert the balance owing under the working capital facility into units of the company at a pre-consolidation conversion price of $0.02 per common share at any time prior to the maturity date, with each unit being comprised of one common share of the company and one common share purchase warrant exercisable for a period of 24 months from the date of issuance at an exercise price of $0.05 per common share.