Intermap Technologies Satisfies All Senior Secured Debt Obligations

Rhea-AI Summary

Intermap Technologies Corporation announced the closure of the second tranche of its private placement, issuing 4,317,118 Class A common shares at CAD$0.56 per share, raising CAD$328,543.60. Proceeds were used to settle US$33.9 million in debt with PenderFund, paying US$1 million under an amended agreement. The company filed its Q2 financial results, and its chairman expressed optimism about growth potential post-debt clearance. Furthermore, 19,718 warrants were issued, exercisable at USD$0.423. The private placement is subject to final approval by the Toronto Stock Exchange.

Positive

• Closed final tranche of private placement securing CAD$328,543.60.
• Eliminated US$33.9 million debt, enhancing financial stability.
• Reported optimism for future growth and market positioning.

Negative

• Only raised CAD$328,543.60, indicating limited investor interest.
• Dependence on debt clearance suggests prior financial instability.

Reports Closing of Second and Final Tranche of Private Placement

Uses Proceeds to Settle All Obligations with Vertex One / PenderFund

Files Financial Statements for the Second Quarter

DENVER, Aug. 17, 2020 /PRNewswire/ - Intermap Technologies Corporation ("Intermap" or the "Company") today announced that it closed the second and final tranche (the "Second Tranche") of its previously announced private placement (the "Private Placement"), issuing 4,317,118 Class A common shares of the Company ("Shares"). The Second Tranche included the issuance of 586,685 Shares at a price of CAD$0.56 per Share for aggregate gross proceeds of CAD$328,543.60.

The proceeds of the Private Placement were used to satisfy all of the Company's obligations under the amended settlement agreement (the "Settlement Agreement") entered into among the Company, its wholly-owned subsidiary, Intermap Technologies Inc. ("ITI"), and PenderFund Capital Management Ltd. (the "Lender"). Under the terms of the Settlement Agreement, the Company and ITI satisfied the Company's outstanding debt of US$33.9 million owed to the Lender with a payment to the Lender of US$1 million from the proceeds of the Private Placement. All liens were extinguished in conjunction with closing.

Intermap also announced that the Company's consolidated financial statements for the quarter ended June 30, 2020, along with management's discussion and analysis for the corresponding period and related management certifications were filed on SEDAR at www.sedar.com on August 14, 2020.

"We are pleased to welcome additional new investors and further position Intermap for growth," commented Patrick A. Blott, Chairman and CEO. "By eliminating debt, combined with tax advantages in multiple jurisdictions, and greater common stock liquidity, Intermap is building the only publicly traded geospatial platform that can leverage three powerful financial currencies – namely, its publicly traded stock, tax attributes, and balance sheet. Together with dedicated and talented employees, our numerous sophisticated investors, patented technology and a scalable business model, we will maximize these advantages during this unique period of industry consolidation."

The Company also issued 19,718 warrants to certain finders (the "Warrants") under the Private Placement. Each Warrant is exercisable for one share at an exercise price of USD$0.423 per Share, being the U.S. dollar equivalent of CAD$0.56 as of the date of issuance, at any time until August 14, 2022.

All Shares and Warrants issued in connection with the Private Placement are subject to a four-month hold period during which trading in the securities is restricted in accordance with applicable securities laws.

The Private Placement and the listing of the Shares issued under the Private Placement and the Shares issuable upon exercise of the Warrants on the Toronto Stock Exchange (the "TSX") is subject to final approval of the TSX upon satisfaction of customary closing conditions. The TSX conditionally approved the Private Placement and the listing of the Shares issued thereunder and the Shares issuable upon exercise of the Warrants prior to closing of the first tranche of the Private Placement.

Mr. Blott subscribed for an additional 22,330 Shares under the Second Tranche. His participation constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that participation in the Private Placement by Mr. Blott does not exceed 25% of the fair market value of the Company's market capitalization.

For more information about Intermap's geospatial solutions, visit intermap.com/investors to download a presentation.

Intermap Reader Advisory
Certain information provided in this news release, including the use of proceeds of the Private Placement, constitutes forward– looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "will be", "will consider", "intends" and similar expressions are intended to identify such forward–looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. Intermap's forward–looking statements are subject to risks and uncertainties pertaining to, among other things, COVID–19 and its impact on both the Company's business and operations and those of its customers, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap's Annual Information Form and other securities filings. While the Company makes these forward–looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward–looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward–looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward– looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward–looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

About Intermap Technologies
Founded in 1997 and headquartered in Denver, Colorado, Intermap (TSX: IMP) (ITMSF: BB) is a global leader in geospatial intelligence solutions. The Company's proprietary NEXTMap® database and value– added geospatial data management, processing, analytics, fusion and orthorectification software and solutions are utilized across a range of industries that rely on accurate, high–resolution elevation data, including aviation, engineering, environmental planning, government markets, hydrology, insurance, land management, law enforcement and patrol, oil and gas, renewable energy, telecommunications, transportation and utilities. Intermap's commercial applications include location–based intelligence, risk assessment, geographic information systems, global positioning systems and 3D visualization. For more information, please visit www.intermap.com.

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SOURCE Intermap Technologies Corporation

FAQ

What recent financial actions did Intermap Technologies take?

Intermap closed the second tranche of its private placement, raising CAD$328,543.60 to settle US$33.9 million in debt.

What were the proceeds of the private placement used for?

The proceeds were used to satisfy all obligations under a settlement agreement with PenderFund, paying US$1 million to clear debt.

What is the exercise price for the warrants issued by Intermap?

The warrants are exercisable for one share at USD$0.423.

When did Intermap Technologies file its financial statements?

Intermap filed its Q2 financial statements on August 14, 2020.

What are the implications of the private placement for Intermap's stock?

The private placement is subject to final approval by the Toronto Stock Exchange, potentially impacting the liquidity and trading of the shares.