CALGARY, Feb. 21, 2017 /CNW/ -Clarocity Corporation (TSXV: CLY) (the "Company" or "Clarocity") today announced that it has amended the previously announced (see August 31, 2016, September 22, 2016 and January 23, 2017 press releases) debt facility ("Facility") provided by StableView Asset Management ("StableView"). The initial $4,000,000 Facility has been drawn down and the Company and StableView have agreed to increase the amount available for drawdown to $6,000,000 (the "Amended Facility"). The up to $2,000,000 additional proceeds from the Amended Facility ("Additional Proceeds") will be used to repay the outstanding promissory notes issued by the Corporation as part of the Valued Veterans, LLC, acquisition, and for general corporate purposes.
"Since the Valued Veterans acquisition, both companies have continued to streamline sales and operations," stated Shane Copeland, Chief Executive Officer of Clarocity. "Our intent is to use this Amended Facility to repay the outstanding promissory note that was issued for the Valued Veterans acquisition. This eliminates the structural barriers of operating as separate entities, providing a unified focus on closing revenue opportunities in our pipeline."
"While the Valued Veterans drawdown is debt neutral, as we're shifting from the Valued Veterans promissory note to this Facility, it allows Clarocity to accelerate integration as we prepare for business in the pipeline," said Dave Guebert, Chief Financial Officer of Valuation Vision. "Our shareholders should be confident that this signals a strong focus that a more tightly integrated entity will also result in significant operational efficiencies.
Pursuant to the Amended Facility, Clarocity will issue up to an aggregate amount of $2 million in principal amount of debentures ("Debentures") at a price of $1,000 per $1,000 principal amount of Debenture. The Debentures will bear an interest rate of 15% per annum payable quarterly in cash or in common shares ("Common Shares"), at the option of StableView, subject to a reduction to 12% per annum if all the Company's debt ranking in priority to the Debentures is fully repaid. The Debentures will mature on September 21, 2019. At any time on or after March 21, 2017, StableView may also upon notice, require repayment of the outstanding Debentures together with any accrued and/or unpaid interest. The Debentures have been guaranteed by the Company's wholly-owned subsidiary, Valuation Vision, Inc. (the "Guarantor"), and are secured against all of the Company's and the Guarantor's property and assets.
In addition, the Company will that number of common share purchase warrants ("Warrants") equal to 33% of the Additional Proceeds divided by the Exercise Price of the Warrants, being Market Price as determined under TSXV Policy. Each Warrant entitles the holder thereof to purchase one Common Share in the capital of the Company at $0.135 per Common Share (the Exercise Price"), exercisable for a period of 36 months from the date of issuance. The Company will also issue 400,000 common shares for every $1,000,000 advanced pursuant to the Amended Facility at a deemed price equal to the Market Price.
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.
About Clarocity Corporation
Clarocity Corporation provides real estate valuation solutions and platform technologies designed to address today's dynamic housing market. Our innovative platform is driving the next-generation of valuation solutions such as MarketValue Pro (MVP) and BPOMerge and setting new standards in real estate valuation quality and reliability.
Every day GSE, banking, and investor clients rely on our proprietary solutions to value assets, fund loans, and securitize portfolios. As a fully integrated technology and valuation services company, Clarocity provides a full spectrum of appraisal and alternative valuation solutions. For more information, visit www.clarocity.com.
This news release contains forward-looking statements which may include financial and business prospects, as well as statements regarding the Company's future plans, objectives or economic performance and financial outlooks and include payment of the Valued Veterans LLC promissory notes. Such statements are subject to risk factors associated with the real estate industry, the overall economy in both Canada and the United States. The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements. In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act)
SOURCE Clarocity Corporation
For further information: For further information, visit www.clarocity.com or contact: Shane Copeland, CEO, Clarocity Corporation, 760-208-6460, email@example.com; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, firstname.lastname@example.org