Mobi724 closes the first tranche ($ 1,150,000) of a loan from the Government of Quebec via Investissement Québec for a maximum amount of $ 2,300,000
Montreal, Quebec – (Newsfile Corp. – June 30, 2021) – Mobi724 Global Solutions Inc. (TSXV: MOS) (âMobi724â or the âCompanyâ), a leading technology provider of AI-enhanced payment card solutions, announces that it has closed the first tranche ($ 1,150,000) a loan of a maximum amount of $ 2,300,000 from the Government of Quebec, through its agent Investissement QuÃ©bec (âLoanâ), the terms of which were detailed in a press release dated 23 June 2021. The Loan is for a period of 6 years and bears interest at the rate of 10%. per year payable monthly. The loan provides for a moratorium on the repayment of the capital of 18 months from the date of the first disbursement of the tranche, after which its principal will be repaid in 54 equal monthly installments. The Loan is secured by a mortgage and is subject to certain restrictive covenants and guarantees customary to such transactions. It is expected that the last two tranches of the Loan will be disbursed by December 31, 2021 subject to compliance with the conditions set out in the Loan.
At the same time as the disbursement of the first tranche of the Loan, the Company issued a guaranteed convertible debenture to Investissement QuÃ©bec, as agent of the Government of Quebec, in the amount of $ 1,150,000 (âDebentureâ) representing the amount of the first tranche. , the terms of which remain subject to final approval by the TSX Venture Exchange (âTSXVâ).
Investissement QuÃ©bec, as agent of the Government of Quebec, may convert, at any time, for a period of 5 years, all or part of the debenture into common shares of the Company, at a conversion price equal to the price in effect on the market on the day of the conversion less the maximum discount permitted by TSXV policies, but in no event will the conversion price be less than the minimum permitted by TSXV policies. Subject to TSXV’s final approval, upon disbursement of each subsequent tranche, the Company will issue a convertible debenture representing the amount of the tranche disbursed.
BDC Capital has agreed to modify the financing agreement it entered into with Mobi724 in September 2017 (âBDC Loanâ) by granting the Company an 18-month moratorium on the repayment of the principal due on the BDC Loan as of disbursement of the first tranche. of the IQ loan. In consideration for the change in the terms of BDC’s loan, the annual interest rate for the spread (which is in addition to BDC Capital’s variable base rate) will be increased by 2% and BDC will receive 3,000,000 debit notes. subscription, each allowing BDC Capital to purchase one common share of Mobi724 for a period of 3 years after its issuance at a price of $ 0.06 per share (âwarrantsâ). The issuance of the warrants remains conditional upon the final approval of the TSXV.
About Mobi724 Solutions Globales Inc.
Every transaction is an opportunity
Mobi724 Global Solutions Inc. (TSXV: MOS) is a financial technology company that enables banks and merchants to offer their customers real-time payment card related incentives, in a white label format. Mobi724’s goal is to add an actionable AI-powered layer of intelligence to every payment transaction, creating engaging consumer experiences and driving additional business opportunities for its customers.
Mobi724 cautions investors that all forward-looking statements or projections made by Mobi724 are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. These factors include, but are not limited to, those described in the âRisk Factors and Uncertaintiesâ section of the Company’s MD&A, available on SEDAR.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS RELEASE IS NOT A SOLICITATION TO BUY OR SELL SECURITIES IN THE UNITED STATES AND IS NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR BROADCAST USE IN THE UNITED STATES.
For more information, please visit www.MOBI724.com or contact:
Marcel Vienneau, CEO
Mobi724 Global Solutions Inc.
T: 514-394-5200 [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89162