Further to its new releases on February 20, 2020 and February 26, 2020, VSBLTY Groupe Technologies Corp. (the “Company” or “VSBLTY”) (CSE:VSBY)) (Frankfurt: 5VS) (OTC: VSBGF) is pleased to announce that it has closed the second tranche of its private placement (the “Offering”) of $1,000 principal amount 10% convertible unsecured debentures (the “Debentures”) for gross proceeds of $230,000, of which $200,000 was raised from the brokered portion of the Offering (the “Brokered Offering”) and $30,000 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.
To date, the Company has raised $1,860,380 pursuant to the Offering.
The Debentures will bear interest from April 9, 2020 (the “Closing Date”) at a rate of 10% per annum on an accrual basis, calculated and payable semi-annually, and will mature on April 9, 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.
In connection with the second closing, the Company paid a cash commission to the Agent of $16,000, a finance fee of 20,000 Shares and issued 53,333 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. To date, the Company has paid total cash commissions to the Agent of $85,600, finance fees of 107,000 Shares and issued 285,333 Broker Warrants pursuant to the Offering. 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 August 10, 2020.