MOBI724 Closes a First Tranche of $1M Private Placement and Announces Secured Revolving Credit Facility of $0.5M
MONTREAL, Jan. 16, 2019 (GLOBE NEWSWIRE) -- 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.
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:
Mr. George AizpuruaVice-President, CommunicationsFirst Canadian Capital Corp.T: 647-500-2389/416-742-5600; E: firstname.lastname@example.org
Ms. Rachel Girard, CPA, CAChief Financial OfficerMOBI724 Global Solutions Inc.T: 514-394-5200; E: IR@mobi724.com