Mobi724 Global Solutions Announces Private Placement Financing of $750,000
Montreal, Quebec--(Newsfile Corp. - August 4, 2020) - Mobi724 Global Solutions Inc. (TSXV:MOS.VN) ("Mobi724" or the "Company"), a fintech enabler of AI-enhanced payment card-linked incentives, announces that it has arrived at a series of agreements, all of which are subject to the final review and approval of the TSX Venture Exchange and are expected to close within 10 days, to secure a financing package of $750,000 comprised of the following components:
- $400,000 invested by the institutional holder of the September 1, 2016 Convertible Debenture (the "Sept-2016 CD")
The Sept-2016 CD, which was set to expire on July 31, 2020, had a value at maturity of $3,976,663.19 (including principal and interest). As part of a financing package to secure additional funds, the Company has agreed to issue a new unsecured convertible debenture ("New CD") to the institutional holder of the Sept-2016 CD. The New CD will be composed of the combined principal and interest of the Sept-2016 CD and new proceeds of $400,000. The New CD, would replace the Sept-2016 CD, mature on June 30, 2022, bear interest at a rate of 6% per annum payable on the maturity date and includes the Company's right to convert the Debenture into common shares of the Company ("Share") at $0.26 per Share at maturity.
- $350,000 invested by a Calgary based Wealth Management Firm ("New Investor")
The Company has agreed to issue an unsecured convertible debenture in the amount of $350,000 to the New Investor, a Wealth Management firm based in Calgary, which matures 36 months from its issuance, bears interest at a rate of 10% per annum payable on the maturity date and is convertible at a price of $0.05 per Share during the first year, and $0.10 per Share following the first year ("New Investor CD"). The New Investor CD also comprises 1,000,000 detachable warrants ("Warrants"). Each Warrant entitles the holder to purchase one Share for a period of 3 years after the closing date at a price of $0.075 per Share.
- Amendment to the January 15 th , 2019 Convertible Debenture (the "Jan-2019 CD"):
The Company has agreed with the holder to extend the maturity date of the $500,000 12% interest bearing debenture issued on January 15, 2019 (the "Jan-2019 CD") from January 15, 2021 to June 30, 2022 and to amend the conversion price from $0.15 to $0.10 per Share.
About Mobi724 Global Solutions Inc.
Every Transaction is An Opportunity
Mobi724 Global Solutions Inc. (TSXV:MOS.VN) is a fintech company which provides a platform, that enables banks and merchants to offer their customers real-time payment card-linked incentives, in a white-label format. Mobi724's objective is to add a layer of AI-driven actionable intelligence to every payment transaction, creating engaging consumer experiences & generating incremental commercial opportunities to its clients.
Mobi724 cautions investors that any forward-looking statements or projections made by Mobi724 are subject to risks and uncertainties, that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described under Item 'Risk Factors and Uncertainties' in the Company's Management Discussion and Analysis, available on SEDAR.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute a solicitation to buy or sell any securities in the United States.
For further information, please visit www.MOBI724.com or contact:
Investor Relations :
Investor Relations Coordinator
Mobi724 Global Solutions Inc.
Marcel Vienneau, CEO
Mobi724 Global Solutions Inc.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/60909