pcNewsWire – EQ Inc. (TSXV: EQ) has a first tranche of previously announced debenture financing, issuing $764,892 non-convertible secured promissory notes.
EQ Inc. Completes New Debt Financing
Toronto, Ontario (FSCwire) – TORONTO, ON – May 10, 2017 — EQ Inc. (TSXV: EQ) (the “Corporation”) announced today that, subject to final TSX Venture Exchange (“TSX-V”) approval, it has completed the debt financing, the terms of which were previously announced on April 5, 2017. Pursuant to this first tranche closing, the Corporation issued $764,892 non-convertible secured promissory notes (the “Promissory Notes”). The Promissory Notes will accrue interest at a rate of 8% per annum, calculated annually, and will be due December 31, 2018.
In connection with the issuance of the Promissory Notes, the lenders received seven non-transferable warrants (the “Bonus Warrants”) for each dollar of principal amount of Promissory Notes, with each Bonus Warrant being exercisable until December 31, 2018, for one common share of the Corporation (a “Common Share”) at an exercise price of $0.13 per Common Share. All Common Shares will be subject to a four month hold period from the date of issuance in accordance with applicable securities law.
An aggregate of $241,901 of the Promissory Notes were purchased by certain non-arm’s length lenders, being Vernon Lobo, the Chairman and a director of the Corporation, Geoffrey Rotstein, the President, Chief Executive Officer and a director of the Corporation.
The issuance of the Promissory Notes and the Bonus Warrants constitutes a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Holders in Special Transactions (“MI 61-101”). The Corporation is relying, however, on an exemption from the valuation and minority voting requirements of MI 61-101.
About EQ Works
EQ Works (www.eqworks.com) provides a smarter way to target customers. The Corporation uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
1235 Bay Street, Suite 401| Toronto, Ontario |M5R 3K4
p: 416.597.8889 f: 416.597.2345
Contact: Geoffrey Rotstein, President and Chief Executive Officer
Source: EQ Inc. (TSX Venture:EQ)