Clarocity Corporation Announces Closing of Fourth Tranche of Financing for $1 Million

Clarocity (TSXV:CLY) announced the closing of the fourth tranche of the previously announced $6,150,000 million amended Debt Facility.
As quoted in the press release:

“We are eager to expedite the formal integration of Valuation Vision and Valued Veterans services groups into one fully aligned operations team under one entity and one brand that is able produce all versions of appraisal and valuation products under the existing AMC license. We firmly believe that by streamlining the services group under one entity we are better able to execute on the existing services sales pipeline and in turn capture more revenue for Clarocity. This financing will speed up the recognition of revenue and propel the sales team forward in closing new business.” stated Shane Copeland, CEO of Clarocity.
Clarocity issued an aggregate amount of $1 million in principal amount of debentures (“Debentures“) at a price of $1,000 per $1,000 principal amount of Debenture. The Debentures will bear an interest rate of 15% per annum payable quarterly in cash or in common shares (“Common Shares“), at the option of StableView, subject to a reduction to 12% per annum if all the Company’s debt ranking in priority to the Debentures is fully repaid. The Debentures will mature on September 21, 2019. At any time after six months and a day after the issuance of the Debentures, StableView may, upon giving six months notice, require repayment of the outstanding Debentures together with any accrued and/or unpaid interest.  The Debentures have been guaranteed by the Company’s wholly-owned subsidiary, Valuation Vision, Inc. (the “Guarantor“), and are secured against all of the Company’s and the Guarantor’s property and assets.
In addition, the Company issued 400,000 Common Shares and 2,444,444 common share purchase warrants (“Warrants“). Each Warrant entitles the holder thereof to purchase one Common Share in the capital of the Company at $0.135 per Common Share, exercisable for a period of 36 months from the date of issuance.

Click here for the full press release.