Further to its new release on February 20, 2020, VSBLTY Groupe Technologies Corp. (the “Company” or “VSBLTY”) (CSE: VSBY) (Frankfurt: 5VS) (OTC: VSBGF) is pleased to announce that it has closed the first tranche of its private placement (the “Offering”) of $1,000 principal amount 10% convertible unsecured debentures (the “Debentures”) for gross proceeds $1,630,380, of which $870,000 was raised from the brokered portion of the Offering (the “Brokered Offering”) and $760,380 was raised from the non-brokered portion of the Offering (the “Non-Brokered Offering”). Echelon Wealth Partners Inc. (the “Agent”) acted as lead agent and sole bookrunner for the Brokered Offering.
The Debentures will bear interest from February 26, 2020 (the “Closing Date”) at a rate of 10% per annum on an accrual basis, calculated and payable semi-annually, and will mature on February 26, 2022 (the “Maturity Date”).
The principal amount of the Debentures may be converted, in whole or in part, at any time before the Maturity Date, into units of the Company (each, a “Unit”) at $0.30 per Unit, if converted at any time prior to or on the date that is one year from the Closing Date, or otherwise convertible at $0.60 per Unit if converted after one year from the Closing Date but before the Maturity Date.
Each Unit consists of one common share in the capital of the Company (a “Share”) and one Share purchase warrant (each, a “Warrant”). Each Warrant will be exercisable into one Share (each a, “Warrant Share”) at a price of $0.60 per Warrant Share for a period of 24 months from the Closing Date, subject to acceleration. The Company may exercise its warrant acceleration right, if on any ten consecutive trading days, beginning on the date that is four months and one day following the Closing Date, the closing price of the Shares on the CSE is greater than $1.00 per Share. If the Company exercises its warrant acceleration right, the new expiry date of the Warrants will be the 30th day following the notice of such exercise.
The Company paid a cash commission to the Agent of $69,600, a finance fee of 87,000 Shares and issued 232,000 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant entitles the Agent to purchase one Share at the price of $0.30 per Share for a period of 24 months from the Closing Date.
The net proceeds from the Offering will be used for acquisitions and general and corporate working capital purposes.
The securities issued in the Brokered Offering and Non-Brokered Offering are subject to a statutory four month and one day hold period, which expires on June 27, 2020.
On Behalf of the Board of VSBLTY Groupe Technologies Inc.
“Jay Hutton”CEO & Director