Clip Money Inc. Announces Issuance of Promissory Notes
- Clip Money Inc. has successfully closed a non-brokered private placement, raising approximately CAD$3,903,713.50 for network expansion and customer acquisition. This could positively impact the stock price as it provides capital for growth and development.
- The issuance of secured promissory notes to executives could negatively impact the stock price if investors perceive it as a sign of financial instability or the need for additional funding.
TORONTO, Aug. 15, 2023 (GLOBE NEWSWIRE) -- Clip Money Inc. (TSX-V: CLIP) (“Clip Money” or the “Company”), a company that operates a multi-bank self-service deposit system for businesses, is announcing that it has issued secured promissory notes (the “Promissory Notes”) to two executives of the Company (the “Lenders”) in exchange for cash loans in the aggregate amount of approximately CDN
The Promissory Notes are due and payable on the earlier of (i) the date that is two months from the original date of issue; and (ii) the closing date of a private placement in the Company (the “Maturity Date”). Interest on the principal amount of the Promissory Notes will accrue from the original date of issue at a rate of twelve percent (
The issuance of the Promissory Notes and the Loan constitutes a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”) as the Lenders are directors and/or officers of the Company. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the fair market value of Promissory Notes does not exceed
Closing of Private Placement
The Company is also pleased to announce that it has closed out its non-brokered private placement of approximately 3,903 note units of the Company (each a “Note Unit”) at a price of CAD
The Company plans to use the net proceeds from the Private Placement for network expansion and customer acquisition, new unit capital expenditures, business operations and technology and for general corporate purposes.
About Clip Money Inc.
Clip Money operates a multi-bank self-service deposit system for businesses through its ClipDrop Boxes that gives users the capability of making deposits outside of their bank branch at top retailers and shopping malls. Rather than having to go to their personal bank branch or using a cash pickup service, businesses can deposit their cash at any ClipDrop Box located near them. After being deposited, the funds will automatically be credited to the business’ bank account, usually within one business day. The Company combines functional hardware, an intuitive mobile app and an innovative cloud-based transaction engine that maximizes business-banking transactions. Combined with mobile user applications, Clip Money offers a cost-effective and convenient solution for business banking deposits in metropolitan statistical areas across Canada and the United States. For more information about the Company, visit www.clipmoney.com.
For further information, please contact:
Joseph Arrage
Chief Executive Officer
tel: 844-593-2547
FAQ
What is the purpose of the private placement?
How much was raised in the private placement?
What is the interest rate on the promissory notes?