PRIVATE PLACEMENT AND INCREASE IN OPERATING LINE OF CREDIT
DARFORD INTERNATIONAL INC. ANNOUNCES PRIVATE PLACEMENT AND INCREASE IN OPERATING LINE OF CREDITVernon, British Columbia - May 14, 2010. Darford International Inc. ("Darford"), is pleased to announce a non-brokered private placement (the "Private Placement") of up to 4,000,000 units (the "Units") at a price of CAN$0.25 per Unit, for total gross proceeds of up to CAN$1,000,000. Each Unit will be comprised of one common share of Darford (a "Share") and one-half of one non-transferable share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional Share for a period of 12 months from the date of issuance at a price of CAN$0.30. Net proceeds from the Private Placement will be used for the acquisition of capital assets necessary to expand Darford's business, inventory needs in connection with the marketing and development of Darford's new Plus One Movement and Zero/G dog food and working capital requirements.
Darford also proposes to pay to certain arm's length parties a cash finder's fee equal to 5 - 7% of the proceeds received in connection with purchasers for the Private Placement located through the efforts of such finders.
The Private Placement and payment of the finder's fee is subject to TSX Venture Exchange acceptance.
Darford is also pleased to announce that its current operating line of credit (the "Operating Loan") with HSBC Bank Canada ("HSBC") has been increased from $550,000 to $2,000,000. All other terms of the Operating Loan remain the same. In addition, Darford has obtained a new additional demand term loan (the "Demand Loan") from HSBC in the principal amount of $250,000. Consistent with Darford's other loan arrangements with HSBC, the Operating Loan and Demand Loan are secured by a general security agreement over all of the personal property of Darford, assignment of insurance, a general assignment of book debts, a guarantee from Darford Industries Ltd., Darford's wholly-owned subsidiary company, subordination agreement for promissory notes, agreement for foreign exchange contracts, assignment of life insurance and security over cash,
