MOBI724 Closes a First Tranche of $1M Private Placement and Announces Secured Revolving Credit Facility of $0.5M
January 16 2019 - 8:45AM
MOBI724 Global Solutions Inc. (“MOBI724” or the
“Company”) (TSX-V:MOS) (OTCQB:MOBIF), a global Fintech company
offering a fully integrated suite of multiple Card-Linked Offers
and Rewards (“CLO&R”), Digital Marketing and Business
Intelligence (“DMBI”) and Payment Solutions (“Payment”) is pleased
to announce that it has successfully completed its first tranche of
a non-brokered private placement financing (the “Offering”) for
aggregate gross proceeds of $1 million.
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 Offering was sold pursuant to exemptions
from prospectus requirements. The securities issued pursuant to the
Offering are subject to a statutory hold period of four months and
one day and completion of the Offering remains subject to the final
approval of the TSX Venture Exchange.
The Company has also entered into a letter of
intent with a private financing group for a secured revolving
credit facility (“Credit Facility”) in an amount up to $0.5M. 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.”
CEO Marcel Vienneau stated: “On behalf of the
Company, I would like to thank Jorge Sierra for having
completed his mandate as CSO and wish him all the best in his
continued retirement from Scotia Bank”. The Company has taken the
steps to institute a search to find a full time CSO and in the
meantime Marcel Vienneau, CEO will act as interim CSO.
About Mobi724 Global Solutions
Inc.
“We enable smart transactions anywhere.”
MOBI724, a global Fintech company, offers a
fully integrated suite of multiple Card-Linked Offers and Rewards,
Digital Marketing and Business Intelligence and Payment Solutions
(including a mobile EMV compliant payment platform), which work
with any payment card, on any mobile device and at any Point of
Sale. MOBI724 provides turnkey solutions for card associations,
card issuers, banks, retailers, manufacturers, offer providers, to
create, manage, deliver and track and measure incentive campaigns
worldwide in real time. The company captures value from big data to
deliver seamless and personalized user experiences for the benefits
of all parties in the ecosystem. MOBI724 headquarters are in
Montreal, Canada, and the company presently has operations in North
and Latin America, the Caribbean and Asia Pacific.
Legal Disclaimer
Certain statements in this document, including
those which express management expectations or estimations with
regard to the Company’s future performance, constitute
“forward-looking statements” as understood by applicable securities
laws. Forward-looking statements are, of necessity, based on a
certain number of estimates and hypotheses; while management
considers these to be accurate at the time they are expressed, they
are inherently subject to significant uncertainties and risks on
the commercial, economic and competitive levels. We advise readers
that these forward-looking statements are subject to risks,
uncertainties, and other known and unknown factors that may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied in these forward-looking
statements. Investors are advised to not rely unduly on the
forward-looking statements. This advisory applies to all
forward-looking statements, whether expressed orally or in writing,
attributed to the Company or to any individual expressing them in
the name of the Company. Unless required by law, the Company is
under no obligation to publicly update these forward-looking
statements, whether to reflect new information, future events, or
other circumstances.
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:
Mr. George AizpuruaVice-President, CommunicationsFirst Canadian
Capital Corp.T: 647-500-2389/416-742-5600; E:
gaizpurua@firstcanadiancapital.com
Ms. Rachel Girard, CPA, CAChief Financial OfficerMOBI724 Global
Solutions Inc.T: 514-394-5200; E: IR@mobi724.com
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