TORONTO, Feb. 13, 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 that it has closed the second tranche (the “Second Tranche”) of a non-brokered private placement (the “Private Placement”) of 3,883,760 units of the Company (each a “Unit”) at a price of CAD$0.45 per Unit for gross proceeds of US$1,307,956.89 (the U.S. dollar equivalent of CAD$1,747,692). Together with the closing of the first tranche of the Private Placement announced on December 23, 2022, the closing of the Second Tranche marks the completion of the Private Placement, which has resulted in a total issuance of 8,408,397 Units for aggregate gross proceeds of US$2,831,745.73 (the U.S. dollar equivalent of CAD$3,783,778.65).
Each Unit consisted of one common share in the capital of the Company (each a “Common Share”) and one Common Share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of CAD$0.65 for a period of 36 months following the issuance of the Units. The expiry date of the Warrants will be subject to an acceleration right in favour of the Company that is exercisable if the common shares of the Company trade at or above a volume-weighted average trading price of CAD$1.30 on the TSX Venture Exchange on any 10-consecutive trading days following the closing date of each tranche of the Private Placement. If the acceleration right is exercised by the Company, the Warrants will expire on the 30th day after the Company issues a press release announcing that it has exercised such acceleration right.
Finder's fees of CAD$30,712.50 were paid in cash on a portion of the Second Tranche to parties at arm's length to the Company (the “Finders”). In addition, 68,250 non-transferable warrants were issued to the Finders (the “Finder Warrants”). The Finder Warrants are exercisable at a price of CAD$0.65 for a period of 36 months following the date hereof.
Certain insiders of the Company have participated in the Private Placement for 452,167 Units in the aggregate. Such participation represents a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”), but the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25% of the Company's market capitalization.
All securities issued in connection with the Private Placement are subject to a four-month and one day hold period in Canada, during which time the securities may not be traded.
The Company plans to use the net proceeds from the Private Placement for network expansion and customer acquisition, new unit capital expenditures, business operations and technology and for general corporate purposes.
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
