Business
In-Touch raises $602,500 and issues a revenue increase alert
In-Touch raises $602,500 and issues a revenue increase alert.
About this update from Intouch Insight Ltd.
[{"type":"text","content":"\n\n\n\nOTTAWA, June 12 /CNW Telbec/ - IN-TOUCH SURVEY SYSTEMS LTD. ("IN-TOUCH"\nTSX-VENTURE: INX) is pleased to announce that it has closed a subordinate debt\nfinancing, the closing of a private placement and is also announcing a revenue\nincrease alert.\n\n\nThe sub-debt financing is with the Business Development Bank of Canada in\nits capacity as General Partner of AlterInvest II Fund L.P. ("BDC"). The\nprincipal amount of the loan is $550,000. The loan is to be disbursed in two\ntranches of $275,000 with the first disbursement on closing and the second\ncontingent on In-Touch's second quarter 2007 results meeting identified\ntargets for revenue and cash from operations. The loan bears interest at\n11.70% on the outstanding principal. Interest is payable monthly. The loan is\nfor a term of 5 years. The principal is repayable in full on maturity. In\naddition, In-Touch is obliged to make annual principal payments to a maximum\nannual amount of $110,000, equal to one half of 'excess available funds'.\nIn-Touch will pay the lender a bonus between 3% and 10% of the market\ncapitalization of In-Touch on the earlier of maturity of the loan, any\nprepayment, or any sale of more than 50% of the shares or assets of In-Touch.\nThe bonus decreases as the market capitalization of In-Touch increases.\n\n\nCoincident with the BDC financing, In-Touch's CEO Michael Gaffney has\nconverted to common shares the entire principal of his outstanding loan to\nIn-Touch, which was a secured convertible demand promissory note with a\nprincipal of $100,000, bearing interest at 2% per month. Pursuant to the terms\nof the loan, the principal was converted to common shares at the rate of one\ncommon share for each ten cents ($0.10) of principal, resulting in the\nimmediate issuance of 1,000,000 common shares to Mr. Gaffney. Mr.Gaffney now\nowns 1,368,774 In-Touch common shares with an option to acquire another\n600,000 common shares.\n\n\nAlso coincident with the financing, In-Touch has closed (conditional on\nreceipt of TSX-Venture Exchange approval) a private placement of common shares\nfor aggregate proceeds of fifty two thousand five hundred dollars ($52,500).\nParticipating in the private placement are two insiders, Rainer Paduch and\nNeil Milton, both directors of In-Touch. They subscribed for an aggregate of\n525,000 common sha...