Mobi724 Global Solutions Inc. Announces Bought Deal Financing
Momentum Public Relations
Press Release: April 04, 2017
Mobi724 Global Solutions Inc. (“Mobi724” or the “Company“) (CSE:MOS)(CSE:MOS.CN) – a Fintech leader offering all in one fully integrated EMV payment, card link couponing and digital marketing solutions, announces that it has entered into an agreement with GMP Securities L.P. (the “Underwriter“) for a “bought deal” private placement offering of special warrants of the Company (the “Special Warrants“) at a price per Special Warrant of $0.35 for aggregate gross proceeds of approximately $5 million (the “Offering“).
Each Special Warrant will entitle the holder thereof to receive and without payment of additional consideration, one (1) unit of the Company (each a “Unit” and collectively the “Units“) consisting of one (1) Common Share (each a “Unit Share“) and one-half of one (0.5) common share purchase warrant (each whole common share purchase warrant a “Warrant“). Each whole Warrant, subject to customary adjustments, shall be exercisable into one (1) Common Share (a “Warrant Share“) at an exercise price of $0.46 per Warrant Share for a period of two (2) years from the date of issue. If the volume weighted average price of the Common Shares on the CSE is equal to or greater than $0.65 for a period of 10 consecutive trading days then the Company may anytime thereafter accelerate the expiry date of the Warrants to the date that is 30 days following the date on which the Company issues notice to all the Warrant holders of the new expiry date. The Company will also issue a press release on the same date as it issues notice confirming the new expiry date of the Warrants.
The Company has agreed to use its reasonable commercial best efforts to obtain a receipt for a final short form prospectus qualifying the distribution of the Units upon exercise of the Special Warrants (the “Qualification Condition“) on or before the date that is 90 days following closing of the Offering (the “Qualification Deadline“). If the Prospectus Qualification does not occur before the Qualification Condition, each holder shall be entitled to receive, without payment of additional consideration, 1.05 Units per Special Warrant. Unless the Qualification Condition occurs, securities issued in connection with the Offering will be subject to a four-month hold period from the date of issue.
The closing of the Offering is subject to the completion of formal documentation, including but not limited to, the execution of an underwriting agreement with the Underwriter in connection with the Offering and receipt of any required regulatory approvals, including approval of the CSE. All securities issued pursuant to the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Closing of the Offering is expected to occur on or about April 18, 2017 or such other date as the Underwriter and the Company may agree.
The Company intends to apply to have its Common Shares listed on the TSX Venture Exchange. There can be no assurance that such a listing would occur.
Mobi724 intends to use the net proceeds of the Offering for general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For more information, please visit www.mobi724globalsolutions.com.
About Mobi724 Global Solutions
Mobi724, a leader in the fintech industry based in Montreal (Canada), offers a unique and fully integrated suite of payment & digital marketing solutions with a combined EMV Payment, Card Linked Offers, and Digital Marketing platform that works on any card and any mobile device. Mobi724’s solutions add value to all types of transactions benefiting banks, retailers and cardholders by leveraging available user and purchasing data to increase transaction volumes and spend. Mobi724 provides a turnkey solution to its clients to capture card transactions on any mobile device, at any point of sale or from any payment card. Mobi724 provides its customers with full and comprehensive traceability and enriched consumer data through its offering. Its solutions enables card associations, retailers, manufacturers, offer providers, mobile operators and card issuers to create, manage, deliver and “track and measure” incentive campaigns worldwide to any mobile device and allow its redemption at any point of sales.