Le Lézard
Classified in: Science and technology, Business

Clip Money Inc. Announces Debt and Equity Financings totalling US$11,000,000 with a lead Strategic Investor

TORONTO, Sept. 11, 2023 (GLOBE NEWSWIRE) -- Clip Money Inc. (TSX-V: CLIP) (OTCQB: CLPMF) ("Clip Money" or the "Company"), a company that operates a multi-bank self-service deposit system for businesses, is pleased to announce a non-brokered private placement of common shares in the capital of the Company (the "Common Shares ") at a price of CDN$0.23 per Common Share (the "Equity Price") for gross proceeds of approximately US$4,900,000 (the "Equity Financing"). The Equity Price was reserved with the TSX Venture Exchange on September 5, 2023. Separately, Clip is also pleased to announce a non-brokered private placement of secured convertible notes of the Company for gross proceeds of US$6,100,000 (the "Convertible Notes Financing", together with the Equity Financing, the "Financings"). The lead subscriber under the Financings is a strategic investor (the "Investor") who will be investing an aggregate amount of US$10,000,000 across the Financings. US$1,000,000 will be taken up across the Financings by another investor. In connection with the Financings, an affiliate of the Investor will also be entering into a commercial partnership with the Company.

The secured convertible notes issued under the Convertible Notes Financing (the "Convertible Note") will be due and payable on the date that is 60 months from the date of issuance (the "Maturity Date") and will accrue simple interest at a rate of 8% per annum, payable at the Maturity Date. The Convertible Notes will be convertible into common shares of the Company ("Common Shares") at any time, in whole or in part, on or prior to the Maturity Date at the option of the holder, based on the principal amount of the Convertible Notes being converted divided by a conversion price of CDN$0.26 per Common Share. No accrued interest shall be paid on any part of the Convertible Notes that is converted into Common Shares. The Convertible Notes will be secured by a first lien security interest in all of the assets of the Company.

Closing of the Equity Financing and the Convertible Notes Financing is subject to Clip Money obtaining all necessary corporate and regulatory approvals, including approval of the TSXV, as well as shareholder consent. All securities to be issued in connection with the Equity Financing and the Convertible Notes Financing will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation in Canada. Following completion of the Financings, the Investor will be a Control Person of the Company (as such term is defined in the policies of the TSXV).

The Company intends to use the net proceeds from Equity Financing and the Convertible Notes Financing for general corporate and working capital purposes. Both the Equity Financing and the Convertible Notes Financing are expected to close before the end of the month.

"We are excited to announce a strategic collaboration with an industry leader. This partnership encompasses a substantial investment, marking the largest to date for Clip, along with a strategic commercial agreement poised to significantly enhance our company's distribution and product portfolio. We're looking forward to sharing more after this transaction closes later this month."

Joseph Arrage, Chief Executive Officer

About Clip Money Inc.

Clip Money operates a multi-bank self-service deposit system for businesses through its ClipDrop Boxes that gives users the capability of making deposits outside of their bank branch at top retailers and shopping malls. Rather than having to go to their personal bank branch or using a cash pickup service, businesses can deposit their cash at any ClipDrop Box located near them. After being deposited, the funds will automatically be credited to the business' bank account, usually within one business day. The Company combines functional hardware, an intuitive mobile app and an innovative cloud-based transaction engine that maximizes business banking transactions. Combined with mobile user applications, Clip Money offers a cost-effective and convenient solution for business banking deposits in metropolitan statistical areas across Canada and the United States. For more information about the Company, visit www.clipmoney.com.

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

For further information, please contact:

Joseph Arrage
Chief Executive Officer
tel: 844-593-2547

These press releases may also interest you

at 15:18
Dr. Lori Esposito Murray, President of The Committee for Economic Development, the public policy center of The Conference Board (CED), issued the following statement today on the passing of Dr. Henry Kissinger:...

at 15:16
Darkhive Inc. announced the closing of a $4M Seed round led by Crosslink Capital and joined by MVP Ventures, Capital Factory, and existing investor Stellar Ventures. This round of financing will enable Darkhive to accelerate production of both...

at 15:00
The Board of Directors at Randolph-Brooks Federal Credit Union (RBFCU) has chosen Mark Sekula to be RBFCU's next President/Chief Executive Officer. Sekula will officially begin this position in mid-March 2024 and will replace Christopher W. O'Connor...

at 15:00
Following a settlement hearing held on October 3, 2023, in Toronto, Ontario, a hearing panel of the Investment Dealer Division of the Canadian Investment Regulatory Organization (CIRO) found that Gravitas Securities failed to have and maintain risk...

at 14:55
GDS Wealth Management, a financial planning firm in the DFW area, was recently named one of D Magazine's top wealth managers. Based on a total of 938 votes from Certified Financial Planners in the Dallas-Fort Worth Area, D Magazine's 2023 list of...

at 14:50
SciNote Electronic Lab Notebook (ELN), an industry leader in R&D ELN and digital laboratory solutions, has partnered with Ganymede Bio, the cloud infrastructure provider purpose-built for the life sciences and manufacturing industries, to redefine...

News published on and distributed by: