Fantasy 360 Technologies Announces $3,000,000 Facility With Westdale Construction Co. Limited

Rhea-AI Summary

Fantasy 360 Technologies d/b/a Immersive Tech has secured a loan agreement with Westdale Construction for up to $3,000,000. This loan, dated December 17, 2021, carries a 12% interest rate and has a maturity date of June 17, 2022, with an option for extension. In exchange, the company will issue 2,000,000 warrants entitling Westdale to purchase shares at $0.52 each over four years. The funds will be used to enhance inventory and expand operational capacity, crucial for strengthening its position in the Metaverse market.

Positive

• Secured a loan of up to $3,000,000 to support business expansion.
• Issuing 2,000,000 warrants to Westdale enhances strategic partnership.
• Loan proceeds will help build inventory and meet customer demand.

Negative

• Loan has a high interest rate of 12%, increasing financial burden.
• Maturity of the loan is only 180 days, which may pressure cash flow.

VANCOUVER, British Columbia, Dec. 20, 2021 (GLOBE NEWSWIRE) -- Fantasy 360 Technologies Inc. d/b/a Immersive Tech (“Immersive Tech” or the “Company”) (CSE:VRAR) (FSE: 79W) (OTCQB: FNTTF) is pleased to announce that it has entered into a loan agreement between the Company and Westdale Construction Co. Limited (“Westdale”) dated December 17 whereby the Company will borrow up to an aggregate of $3,000,000 loan (the “Loan”) and will issue to Westdale 2,000,000 common share purchase warrants (the “Warrants”). Each Warrant will entitle the holder to acquire one common share of the Company at an exercise price of $0.52 for a period of 4 years.

“We are very excited to be able to accelerate our mission and continue building the most immersive Metaverse experience in the world. We thank Westdale for their confidence in us and their belief in that mission and were looking forward to working with them as a strategic partner,” said Tim Bieber, CEO Fantasy 360 Technologies.

The Loan carries an interest rate of 12% per annum, calculated daily on the outstanding principal amount of the Loan, not in advance, payable monthly on the first business day of each month. The original maturity date is 180 days from the advance date, being June 17, 2022. The Company has the option to extend the maturity date for an additional period up to 180 days from the original maturity date (the “Option”). If the Company chooses to exercise the Option, it will enter into a general security agreement in favour of Westdale, to be executed and delivered at the time the Option is exercised and grant a first priority security interest on all of the Company’s property, assets and undertaking.

The Company intends to use the proceeds from the Loan to satisfy demand, build an inventory of critical parts and expand its capacity to deliver the best range of products possible to its customers.

The Warrants will be subject to a four-month hold period in accordance with applicable securities laws.

On behalf of the Board of Directors

Tim Bieber
Director and Chief Executive Officer
Fantasy 360 Technologies Inc.
https://www.immersivetech.co/

For further information about Fantasy 360 Technologies, please contact:

Contact: Tim Bieber
Email: investors@immersivetech.co
Telephone: +1-604-283-3029

ABOUT FANTASY 360 TECHNOLOGIES INC.

Fantasy 360 Technologies is building the Physical Metaverse through its location-based Platform.  Since 2016 the Company has been an industry leader in Social Entertainment, Virtual Reality (VR) and Augmented Reality (AR) entertainment attractions.  With its Hardware Platform UNCONTAINED and its Software Platform Uncontained/OS, the company helps its stakeholders build user experiences unmatched in realism, depth and immersion.  The company builds experiences on its platforms for some of the world's largest companies including: Intel, Bayer, Capital One, Scotia Bank, the US Food and Drug Administration, Allegiant Airlines and more.

ABOUT WESTDALE CONSTRUCTION CO. LIMITED

For over 60 years, Toronto-based Westdale Properties has owned, managed and developed real estate across North America. As a family company with a unique vision for multi-residential real estate and an understanding of mixed-use development, we are committed to fostering positive experiences for the thousands of people who live in, work and shop at our properties. Our Canadian portfolio alone includes close to 7000 residential units and over 2.5M square feet on retail, commercial and industrial spaces. Across the US, we own and manage close to 35,000 residential units in 150 properties and 30 cities, as well as 3.0M square feet of retail and commercial space. Our food & hospitality portfolio includes some of Toronto’s most loved restaurants including The Chase, Kasa Moto, Planta and Palm Lane.

In joint venture with our esteemed partners, Westdale is currently developing some of Canada’s most-anticipated and significant new urban real estate including the Nobu Condo and Hotel (Madison), the Frank Gehry designed Mirvish site at King & Duncan (Great Gulf/Dream), Theory at College & Beverly (Parallax), Line 5 Condos at Yonge & Eglinton (Reserve Properties) and The Roy in downtown Halifax (Starfish).

Westdale’s team of almost 1500 employees across Canada and the US share a dedication to our partners, tenants and clients, bringing a nimble approach and creative strategy to every project we build, develop and manage. We partner with leading technology providers to ensure our buildings are backed by the industry’s most efficient, effective and sophisticated property and asset management systems. Real-time accounting, reporting and communication are standard from property to property and region to region.

Forward-Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes the use of proceeds of the Loan, the potential exercise by the Company of the Option and the potential grant of a security interest in favour of Westdale.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Immersive Tech disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FAQ

What is the loan amount Fantasy 360 Technologies announced on December 17, 2021?

Fantasy 360 Technologies announced a loan agreement for up to $3,000,000.

What is the interest rate on the loan from Westdale Construction?

The loan carries an interest rate of 12% per annum.

How many warrants is Fantasy 360 Technologies issuing to Westdale?

The company will issue 2,000,000 warrants to Westdale.

What is the exercise price of the warrants issued to Westdale?

The exercise price of the warrants is set at $0.52.

What will Fantasy 360 Technologies use the loan proceeds for?

The proceeds will be used to build inventory and enhance operational capacity.