First Global Data Ltd (TSXV:FGD) would like to announce that, further to its news release dated November 21, 2016 and as noted in previous financial statements, the Company has settled its outstanding debt with 7159618 Manitoba Ltd. (“715Manitoba”).
The original loan agreement was entered into on November 17, 2015 and the Company had sought TSX approval for the issuance of consideration shares at that time. As no approval was obtained, the Company and 715Manitoba entered into an amending agreement on November 21, 2016 (the “Amending Agreement”) which allowed for the conversion of debt under similar terms and conditions as the private placement which was closed on December 7, 2016.
Pursuant to the Amending Agreement, the Company has paid an aggregate of CDN $2.1 million in cash and issued an aggregate of 22,330,000 units (the “Debt Units”). Each Debt Unit is comprised of one (1) common share and one (1) purchase warrant. Each purchase warrant entitles the holders to acquire one common share of the Company at an exercise price of CDN $0.20 at any time until close of business on May 29, 2019.
Pursuant to the policies of the TSX Venture Exchange, the common shares and common share purchase warrants comprising the Debt Units are subject to resale restrictions. The securities will be released in tranches of 5,582,500 common shares and common share purchase warrants on each of September 30, 2017, November 29, 2017, February 28, 2018 and May 29, 2018.
As a result of the payment of $2.1 million and the issuance of the Debt Units, all of the debt owing to 715Manitoba has been forgiven resulting in the Company realizing a total debt reduction of $8,041,116, some of which has already been captured in the Company’s financial statements. In addition, 715Manitoba has agreed to discharge all security interests filed against the Company with respect to the debt.
“Although the shares issuance portion for the settlement of the loan had been delayed since the loan date of November 17, 2015, we are thankful that the TSX has now provided their approval. 715Manitoba were major contributors to getting the company to this enviable and evolved FINTECH leadership position we enjoy today. Our company is now entering a more advanced stage of the business cycle as we are now driven by forward fundamentals as deployments continue to gain traction,” said Andre Itwaru, Chairman and CEO of First Global.
About First Global: (www.firstglobaldata.com)
First Global is an international financial services technology (“FINTECH”) company. The Company’s two main lines of business are mobile payments and cross border payments. First Global’s proprietary leading edge technology enables the convergence of compliant domestic and cross border payments, shopping, Peer to Peer (“P2P”), Business to Consumer (“B2C”), and Business to Business (“B2B”) payments. First Global enables its strategic partners and clients around the world with our leading edge financial services technology platform.
Caution:
Neither TSX Venture Exchange Inc. (“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.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Information:
This news release contains “forward-looking information” within the meaning of applicable securities laws. Although First Global believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because First Global can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. First Global undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of First Global, its securities, or financial or operating results (as applicable). First Global disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
