TORONTO, ONTARIO, JUNE 18, 2015 DealNet Capital Corp. (“DealNet” or the “Company”) (CSE: DLS) has closed its previously announced private placement for $1.5-million of convertible debentures as announced on June 17, 2015.
The company received a single subscription for the entire $1.5-million convertible debenture offered. The debenture will mature on June 18, 2017, bear interest at the rate of 12 per cent per year payable quarterly and be secured by the assets of Impact Mobile Inc., a wholly owned subsidiary of the company, subordinated to a secured line of credit of Impact Mobile. The principal amount of the debenture will be convertible at the holder’s option into common shares of the company at a conversion price of 19 cents for each common share. The company may, at its option, redeem any or all of the debenture at any time prior to maturity for the unpaid principal plus accrued but unpaid interest. If the current market price of the common shares on the date which the company provides the redemption notice is not at least 125 per cent of the conversion price, the company must also pay an additional amount equal to 20 per cent of the interest the holder would have received if held until maturity. The debenture is subject to a hold period expiring on Oct. 19, 2015.
The company will use the net proceeds of the offering to redeem its current secured subordinated debentures, which mature on July 29, 2015, along with accrued but unpaid interest, for approximately $1.15-million. The balance will be used for general working capital purposes.
In connection with the debenture offering, the company paid a finder’s fee of $105,000 and issued 552,631 broker warrants. Each broker warrant is exercisable for one common share of DealNet at 19 cents per share during the period ending Dec. 18, 2016.
About DealNet Capital Corp.
DealNet Capital Corp. focuses on two key vertical markets, Consumer Engagement and Consumer Finance. Through acquisitions, the Company has become a leader in the Consumer Engagement space helping their corporate customers ‘speak’ to their consumers the way they want to be spoken to using live Voice, Chat, Text, Email and Proximity based engagement solutions. The Company has leveraged its engagement business to offer home improvement financing solutions to consumers, which offer attractive yields and low default rates. The Company continues to seek acquisitions in these key markets.