Montreal, Quebec – (Newsfile Corp. – June 23, 2021) – Mobi724 Global Solutions Inc. (TSXV: MOS) (“Mobi724” or “Company”), a fintech provider of AI-powered payment card solutions, is announcing the closure of non-intermediated private placement funding (the “Offer”) for aggregate revenue. in the amount of US $ 845,000 and accepted a conditional loan offer of up to US $ 2,300,000 from the Government of Quebec through its Commissioner, Investissement Québec, for a period of 6 years (the “Loan Offer”).
Completion of private placement:
The closing of the Offer was facilitated by Echelon Wealth Partners (“Echelon”) and consisted of the sale of 16,900,000 units (each, “Share”) to the Company at a price of US $ 0.05 per unit (the “Purchase Price”). Each Unit consists of one ordinary share of the Company (the “Ordinary Share”) and an order for the purchase of the Ordinary Shares of the Company for three quarters (“Warrant”). Each warrant entitles the holder to purchase one common share (each is a “warrant share”) within 3 years after the closing date at a price of $ 0.06 per warrant share, subject to accelerated execution of the warrant, provided that if the volume is weighted, the price of the Common Shares is equal to or exceeds $ 0.20 for 20 consecutive trading days, after which the Company may, at any time thereafter, accelerate the expiration date of the warrants until the date that is 30 days after the date on which the Company notifies all warrant holders with a new date expiration date and also issue a press release on the same day confirming this new expiration date.
The offer was sold in accordance with the prospectus exemption. The proceeds from the sale of Shares will be added to working capital in order to develop the Company’s business. Securities issued pursuant to the Offer are subject to a statutory retention period of four months and one day, and completion of the offer remains conditional upon final approval by the TSX Venture Exchange (the “Exchange”).
Independent investors signed up for 14,600,000 Shares and an additional 2,300,000 Shares were acquired by designated officers, directors and members of the Mobi724 management team. As a reward for their participation, Echelon received a referral fee of $ 58,400 in cash and 1,168,000 brokerage warrants issued under the same terms as the aforementioned warrant shares.
Units acquired by some insiders are considered a “related party transaction” under Multilateral Instrument 61-101 and are exempt from formal valuation and minority approval requirements MI 61-101 (subject to subsections 5.5 (a) and 5.7 (a)) as neither the fair market value of the Common Shares allocated to the interested parties, nor the remuneration received from them, exceeded 25% of the market capitalization of the Company.
The closure of the Credit Offer is subject to the Company complying with certain closure conditions, which the Company expects to meet no later than within the next 30 days. The loan offer will be guaranteed by a mortgage and will be disbursed in three (3) tranches, with the first tranche (USD1,150,000) disbursed at closure. The next two tranches must be disbursed by December 31, 2021, subject to the conditions set out in the Loan Offer. The loan offer contains certain covenants and guarantees common to such transactions. The loan offer has an annual interest rate of 10%, payable monthly. The loan provides for an 18-month moratorium on the repayment of capital, starting from the date of the first payment, after which the principal amount of the loan will be repaid in 54 equal monthly installments.
The loan offer stipulates that the Government of Quebec, through Investissement Québec, may at any time convert all or part of the loan into ordinary shares of the Company at a conversion price equal to the prevailing market price of the shares per day. conversion minus the maximum discount allowed by the rules of the Exchange, but in no case should the conversion price be less than the minimum allowable in accordance with such rules. Subject to final approval by the Exchange for the payment of each tranche, the Company will issue a convertible bond to the Government of Quebec through Investissement Québec representing the tranche paid in accordance with the terms of the Credit Offer.
Mathieu Laurin, CFO Mobi724 said: “This is $ 845,000 in equity financing combined with a $ 1,280,500 capital increase announced in press releases on January 28th.th and 9 February 2021 corresponds to a capital increase of USD 2,000,000 that the Company referred to during the last AGM in December 2020 to fulfill its 2021 business plan.… “
About Mobi724 Global Solutions Inc.
Every transaction is an opportunity
Mobi724 Global Solutions Inc. (TSXV: MOS) is a fintech company that allows banks and merchants to offer their customers payment card incentives in real time in a white label format. Mobi724’s goal is to add a layer of actionable AI-powered analytics to every payment transaction, creating an engaging customer experience and creating additional business opportunities for its customers.
Mobi724 cautions investors that any forward-looking statements or predictions made by Mobi724 are subject to risks and uncertainties that could cause actual results to differ materially from those predicted. Such factors include, but are not limited to, those described in the “Risks and Uncertainties” section of the Management Discussion and Analysis available on SEDAR.
Neither TSX Venture Exchange nor its Regulatory Service Provider (as the term is defined in the TSX Venture Exchange policy) is responsible for the adequacy or accuracy of this release.
This press release is not an invitation to buy or sell any securities in the United States.
For more information visit www.MOBI724.com or contact us:
Marcel Vino, CEO
Mobi724 Global Solutions Inc.
T: 514-394-5200 firstname.lastname@example.org
Eli Rozhansky, Investor Relations Coordinator
Mobi724 Global Solutions Inc.
T: 514-394-5200 email@example.com
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