Clip Money Inc. Announces Binding Offer Letter with Business Development Bank of Canada for $500,000 Loan
20 December 2023 - 8:41AM
Clip Money Inc. (TSX-V: CLIP) (“
Clip” or
the
“Company”), a company that operates a
multi-bank self-service deposit system for businesses, is pleased
to announce that it has entered into a binding offer letter (the
“
Offer Letter”) with the Business Development Bank
of Canada (“
BDC”) for a loan in the amount of
CDN$500,000 (CAD) in the form of non-revolving subordinated secured
debt (the “
BDC Loan”). The Company intends to use
the proceeds from the BDC Loan for general working capital
purposes.
Clip’s mission to
transform how businesses conduct financial transactions aligns with
a cornerstone of BDC’s strategy: increasing support for
entrepreneurs. By reimagining the speed, location, and logistics of
business deposits and other services, Clip Money is bringing
cost-effective and convenient new solutions for businesses
owners.
The BDC Loan will bear
interest at a floating rate equal to the BDC floating base rate
plus a margin of 1.00%. The current BDC base rate as of the date
hereof is 9.30% per annum. All obligations of the Company under the
BDC Loan and the Offer Letter will be secured by a third-lien
security interest that is subordinated to prior security interests
granted to certain existing lenders of the Company (the
“BDC Security”). The BDC Security will cover all
present and after-acquired personal property, except consumer goods
of the Company. The principal amount of the BDC Loan is repayable
by the Company in full on November 15, 2026. Interest on the BDC
Loan is payable monthly on the 15th day of each month. In
connection with the advancement of the BDC Loan, the Company will
pay BDC a one-time fee of $47,800 (CAD), as well as an annual
management fee of $350 (CAD).
ICP Securities
Market Making Activities
Further to the
Company’s press release dated November 28, 2023 where the Company
announced that it had entered into a Market Making Services
Agreement with ICP Securities Inc. (“ICP”), the
Company wishes to clarify that ICP will be using its own funds to
facilitate market making activities. In consideration for the
market making activities undertaken by ICP, the Company will make a
monthly payment of $7,500 (CAD) to ICP.
About Clip
Money Inc.
Clip 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 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.
For further
information, please contact:
Joseph ArrageChief Executive
Officertel: 844-593-2547
Clip Money (TSXV:CLIP)
Historical Stock Chart
From Apr 2024 to May 2024
Clip Money (TSXV:CLIP)
Historical Stock Chart
From May 2023 to May 2024