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MOBI724 Closes a First Tranche of $1M Private Placement
Jan. 16, 2019 09:33AM PST
Fintech InvestingMobi724 (TSXV:MOS) on Wednesday announced that it has completed its first trance of private placement for aggregate gross proceeds of $1 million. Further, the company said that it has entered into a letter of intent with a private financing group for a secured revolving credit facility in an amount up to $0.5 million. As quoted …
Mobi724 (TSXV:MOS) on Wednesday announced that it has completed its first trance of private placement for aggregate gross proceeds of $1 million.
Further, the company said that it has entered into a letter of intent with a private financing group for a secured revolving credit facility in an amount up to $0.5 million.
As quoted in the press release:
The Offering consisted of the sale of 7,692,307 common shares (“Shares”) at a price of $0.065 and the issuance of a non-secured debenture (“Debenture”) in the capital amount of $0.5 million. The Debenture matures 24 months following its issuance, bears interest at a rate of 12% per annum payable semi-annually and is convertible at a price of $0.15 per Share.
The Credit facility, which bears interest at a rate of 13% per annum is subject to adjustments as the Bank of Canada increases its prime rate and will be used to finance the Company’s eligible receivables. The Credit Facility is secured by a 1st ranking hypothec on the accounts receivables. The Credit Facility is conditional upon receipt of final approval from the Company’s existing creditors, due diligence review, final approval of the TSX Venture Exchange and other customary conditions. Completion of the Financing will be finalized over the course of the coming weeks as approvals are obtained. Net proceeds raised from the aforementioned transactions will be used to finance ongoing obligations of the Company and general working capital.
“This $1 million private placement, which we have been working on since early November, places the Company in a position to accelerate the execution of its business plan. We are very happy to work with our long-term investor and supporter. We anticipate closing the $0.5M Credit Facility in the coming weeks and we are also pleased with this non dilutive financing” stated Marcel Vienneau CEO of MOBI724.
Bernard Pouliot, the principal of BF Belmont, stated: “We have participated in multiple financing rounds since 2014, and this demonstrate our continued confidence in the company’s vision and business plan.”