Business
EQ Inc. Announces Financing of $1,716,654 of Non-Convertible Secured Promissory Notes and Issuance of Bonus Warrants
TORONTO, ON / ACCESSWIRE / August 19, 2019 / EQ Inc. (TSX-V:EQ ) (the “ Cor...
About this update from Eq Inc.
[{"type":"text","content":"EQ Inc. Announces Financing of $1,716,654 of Non-Convertible Secured Promissory Notes and Issuance of Bonus WarrantsTORONTO, ON / ACCESSWIRE / August 19, 2019 / EQ Inc. (TSX-V:EQ) (the “Corporation”) a leader in location behavioural data and intelligence, is pleased to announce a debt financing of $1,716,654 non-convertible secured promissory notes (the “Promissory Notes”) to certain arm’s length and non-arm’s length lenders. The Corporation intends to close the financing on August 19, 2019. The Promissory Notes will bear interest at a rate of 12% per annum, calculated annually, and will mature seventeen months from the date of issuance.The lenders will receive up to 2,574,981 non-transferable warrants (the “Bonus Warrants”), with each Bonus Warrant being exercisable for a period of seventeen months from the date of issuance for one common share of the Corporation (a “Bonus Share”) at an exercise price of $0.66 per Bonus Share. All Bonus Shares will be subject to a hold period for four months from the date of issuance of the Bonus Warrants in accordance with applicable securities law.The Promissory Notes and the Bonus Warrants remain subject to the final acceptance of the TSX Venture Exchange (the “TSX-V”).The Corporation expects to use the proceeds from the issuance of the Promissory Notes to refinance its currently outstanding non-convertible secured promissory notes (the “Existing Promissory Notes”) and to execute its business plan.An aggregate of $888,298 of the Promissory Notes were purchased by non-arm’s length lenders, being Vernon Lobo, Chairman and a director of the Corporation, Geoffrey Rotstein, President, Chief Executive Officer and a director of the Corporation, and Dilshan Kathriarachchi, Chief Technology Officer 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 WorksEQ Works (www.eqworks.com) provides a smarter way to target customers. Using first-party, location-based behaviour sign...