$800,000 loan to fund continued
growth
/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S.
NEWSWIRE SERVICES/
EDMONTON, Oct. 20, 2016 /CNW/ - eQube Gaming Limited
(TSX-V: EQG) ("eQube" or the "Company") today is pleased to
announce that it has entered into a loan agreement with a company
controlled by Mr. Andrew Janko, a
director of the Company (the "Lender"), for a $800,000 secured non-amortizing loan bearing
interest at 10% per annum and maturing October 19, 2019 (the "Loan"). The Loan is
secured by one of the Company's customer contracts.
On the basis that the Lender is a director of eQube, the Loan is
a "related party transaction" within the meaning of Multilateral
Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). eQube is not
required to obtain a formal valuation under MI 61-101 with respect
to the Loan because the Loan is a related party transaction
described in paragraph (j) of the definition of "related party
transaction" in MI 61-101. Section 5.4(1) of MI 61-101
provides that only related party transactions described in
paragraphs (a) to (g) of the definition of related party
transaction are subject to the formal valuation requirement.
eQube is also exempt from the minority approval requirement of MI
61-101 in respect of the Loan, as pursuant to Section 5.7(1)(f) of
MI 61-101, the Loan was negotiated on reasonable commercial terms
and does not feature an equity conversion privilege or allow for
eQube to repay the Loan in securities.
The proceeds will be used to fund equipment purchases to satisfy
customer contracts, software development, and general corporate
purposes.
"It is always a pleasure to close financing which secures
additional capital, particularly when it is from existing Company
shareholders, who continue to demonstrate their support of the
Company. This support allows us to focus on customer acquisition,
continuing our efforts to show how current and potential customers
realize the benefits of eQube's product suite to their business. We
are gaining significant traction in new and existing markets with
demonstrable value added to our client locations", commented
eQube's CEO John Purcell. "The
financing further demonstrates confidence investors have in eQube
and the value of its assets as security."
About eQube:
eQube is a leading provider of electronic bingo (eBingo) systems
for land based gaming operators in commercial and charitable gaming
facilities. eQube has the majority market share in the Canadian
regulated bingo market, as well as the Irish market and operates
the linked bingo games in Alberta
and Ireland. Current solutions,
consisting of commercial eBingo, linked wide area bingo,
traditional bingo and automated bingo style electronic games are
complemented by enterprise class accounting and back office
reporting combined with open platform customer management data
tools. eQube's platform provides new and enhanced revenue channels
by enhancing the experience, environment and service to our
clients' customers.
eQube has been offering its eBingo and related gaming solutions
to commercial, tribal, regulatory and charitable customers
worldwide since its inception in 1999. eQube is listed on the TSX
Venture Exchange under the symbol EQG. For more information visit:
www.eqube.com
Disclaimer in Regards to Forward-Looking Statements
This news release contains forward-looking statements and
information ("forward-looking statements") within the meaning of
applicable securities laws and is based on the expectations,
estimates and projections of management of eQube as of the date of
this news release, unless otherwise stated. The use of any of the
words "expect", anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should",
"believe", "plans", "intends" and similar expressions are intended
to identify forward-looking statements. Such forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans relating to the
future and include, but are not limited to statements with respect
to the use of proceeds from the Loan. Investors are cautioned that
reliance on such information may not be appropriate for other
purposes, such as making investment decisions. Forward looking
information provided in this news release is also based on certain
assumptions regarding expected growth, results of operations,
performance and business prospects and opportunities. The Company
intends to use the proceeds from the Loan as set forth
above.
Since forward-looking statements addresses future events and
conditions, such information by its very nature involves inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These risks include circumstances that are not known to the
Company at this time where reallocation of the proceeds from the
Loan may be advisable for business reasons that management believes
are in the Company's best interest. Accordingly, readers
should not place undue reliance on the forward-looking statements
contained in this news release.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information regarding some of these risks,
expectations or assumptions and other factors may be found in
eQube's filings with the Canadian securities regulators, available
at www.sedar.com. The reader is cautioned not to place undue
reliance on these forward-looking statements. The forward-looking
statements contained in this news release are made as of the date
hereof and eQube undertakes no obligations to update publicly or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE eQube Gaming Limited