By Sheri Kasprzak
New York, March 24 - AirIQ Inc. said it has negotiated a C$5,309,091 private placement of special warrants and has also secured C$4 million from term loan with warrants.
The company intends to sell 26,545,455 special warrants at C$0.20 each.
Each special warrant is exchangeable for one common share once a prospectus covering the underlying shares is declared effective.
Paradigm Capital Inc. is the placement agent.
Proceeds from the special warrants will be used to satisfy an earn-out payment obligation related to its acquisition of Aircept.com, LLC, a company that develops global positioning technologies. Any remaining proceeds will be used for working capital.
AirIQ also signed an agreement with Lenbrook Corp. for a C$4 million term loan.
The 12% loan matures in five years, and interest is due only for the first two years with quarterly blended payments payable for the remaining 12 quarters of the term.
The loan comes with warrants for 5 million shares, exercisable at C$0.24 each for three years.
Proceeds from the loan will be used to repay a portion of the company's current credit facility.
Both the loan and the private placement are expected to close April 4.
AirIQ, based in Toronto, provides internet application services specializing in telematics used by commercial fleets.
Special warrants
| Issuer: | AirIQ Inc.
|
| Issue: | Special warrants exchangeable for common stock
|
| Amount: | C$5,309,091
|
| Special warrants: | 26,545,455
|
| Price: | C$0.20
|
| Warrants: | No
|
| Placement agent: | Paradigm Capital Inc.
|
| Pricing date: | March 24
|
| Settlement date: | April 4
|
| Stock symbol: | Toronto: IQ
|
| Stock price: | C$0.25 at close March 24
|
|
|
| Term loan
|
| Issuer: | AirIQ Inc.
|
| Issue: | Term loan
|
| Amount: | C$4 million
|
| Maturity: | Five years
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | For 5 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.24
|
| Investor: | Lenbrook Corp.
|
| Announcement date: | March 24
|
| Settlement date: | April 4
|
| Stock symbol: | Toronto: IQ
|
| Stock price: | C$0.25 at close March 24
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
