Monexa Technologies Corp. Announces Debt Financing

VANCOUVER, Feb. 4 /CNW/ - Monexa Technologies Corp. (TSX Venture: MXA) ("Monexa" or the "Company") is pleased to announce that the Company's Board of Directors has accepted the terms of a loan (the "Loan") from Ansera Capital II, Limited Partnership ("Ansera") in the principal amount of $600,000 which can be drawn down by the Company on a demand basis.

Garth Albright, CFO of Monexa, said, "The funds from the recently closed private placement, together with this Loan, will carry Monexa to operating on a cash-flow break-even basis.  With our success in 2010 at signing new recurring revenue contracts and renewing existing agreements, we've demonstrated the growth potential in the SaaS billing business, and built revenue for 2011 and beyond."

John Jacobson, CEO of Monexa, said, "Exciting new growth and established enterprise companies chose Monexa in 2010 as their SaaS billing solution.  It was a rewarding year for building long-term value.  With the January 2011 capital injection from the private placement and the Loan from Ansera, we're equipped to take the Company to the next level."

The Loan will be secured by a promissory note (the "Note") which yields interest of 10% per annum and matures on September 30, 2011. Ansera has the option to require the accrued interest on the Note to be repaid in cash or by the issuance of common shares of the Company calculated at the volume-weighted average price of the shares for the 30 day period ending on January 31, 2011. The Loan is secured by a general security agreement granting Ansera a security interest in all of the assets of the Company.  The Loan is subject to an agreement fee of $12,000 and a discharge fee equal to 4% of the average amount outstanding over the term of the Note.

In the event that:  (1) while the Note is outstanding or within the 8 month period following repayment of the Note, there is a sale of all or substantially all of the assets of the Company; (2) while the Note is outstanding or within the 8 month period following repayment of the Note, there is a merger, consolidation, recapitalization of similar transaction resulting in shareholders prior to such transaction holding less than 50% of the voting power of the resulting entity; or (3) the issuance of additional securities by the Company for a total subscription price greater than $650,000 while the Note is outstanding (other than securities issuable pursuant to the terms of existing convertible securities, such as preferred shares, stock options or warrants or securities issued in payment of existing interest or accrued dividend obligations), Ansera will be entitled to repayment of the Note in an amount equal to two (2) times the higher of: (a) the principal amount of the Note then outstanding, plus all accrued and unpaid interest; or (b) $200,000.  

The Note shall become immediately due and payable on an event of default, which includes: bankruptcy or insolvency of the Company; the cessation of operations of the Company; the liquidation, dissolution or winding up of the Company; default by the Company on any existing bank or term loan; or a variance of more than 10% of the agreed operating expenses or monthly revenue as outlined in the Company's business plan.

The Company also announces that it has granted to a director and officer of the Company a total of 750,000 incentive stock options under its existing fixed stock option plan, which are exercisable at a price of $0.10 per share for a period of 5 years and vest in stages over a period of not less than 18 months. This grant is subject to regulatory approval.

About Monexa Technologies Corp.

Monexa pioneered the on-demand subscription billing space and has worked with hundreds of businesses to help monetize their services. A deep skill-base and leadership in subscription billing sets Monexa apart from other service providers and attracts established customers North America-wide. Monexa's customers range in size from high-growth SaaS and Cloud Infrastructure companies to large household-name companies like AOL Canada, Sprint, Amway and Bell Mobility.

Monexa provides companies the freedom to market their services through creative pricing plans by removing barriers imposed by traditional billing and payments processes. Monexa stands for rapid, dependable monetization of all subscription services. For more information visit www.monexa.com.

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Monexa Technologies Corp.

For further information:

Garth Albright, CFO / John Jacobson, CEO
D 604-630-5657 / D 604-630-5661
Eir@monexa.com

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Monexa Technologies Corp.

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