TSX Venture Exchange: FGD
TORONTO, Dec. 7, 2016 /CNW/ - First Global Data Limited ("First Global" or the "Company") is pleased to advise that it has closed its $3 Million private placement.
Each of the Company's Officers, and every member of the Company's Board of Directors participated in the private placement.
Andre Itwaru, the Company's Chairman and CEO said, "It is gratifying to see the high level of support from the investor community as the private placement was oversubscribed and had to be cut back to the original Exchange approval for a maximum of $3 million. Every member of our Executive believes in our mission to empower and enable smartphone users to mobilize their payment methodology and our vision for pre-eminence in the non bank financial service industries, and this was manifested by consensus investment into the private placement. We are now well capitalized to execute on our mandate and a full pipeline of initiatives."
On November 11, 2016 the Company announced that it was raising up to CDN $3,000,000 of gross proceeds (the "Offering") from the sale of up to 30,000,000 units (the "Units") priced at CDN$0.10 per Unit. Each Unit to be comprised of one (1) common share in the capital of the Company (a "Common Share") and one (1) Common Share purchase warrant (a "Warrant") entitling the holder to purchase one (1) Common Share for a period of three (3) years from the closing date of the Offering (the "Warrant Expiry Date") at an exercise price of CDN $0.20 per Common Share. Gross proceeds of the Units sold under the Offering will be used to fund the Company's continued expansion of its mobile payment service in target markets around the world, and for the purposes of general working capital.
The securities issued pursuant to the Offering will be subject to a four (4) month and one (1) day statutory hold period. In connection with the Offering, finder's fees totaling approximately CDN $210,000 in cash was paid and approximately 2,100,000 Common Share purchase warrants (each, an "Agent Warrant") were issued. Each Agent Warrant is exercisable for one Common Share during the two (2) years following the first closing at an exercisable price of CDN $0.25.
Six (6) insiders of the Company participated in the Offering, thereby making the Offering a "related party transaction", as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the Company is not listed under a specified market (as set out in section 5.5 (b) of MI 61-101) and the fair market value of the Shares issued to, nor the consideration paid by any of the Directors exceeded 25% of the Company's market capitalization. No new insiders were created, nor has any change of control occurred, as a result of the Offering.
About First Global
First Global is an international financial services technology (FINTECH) company. The Company's two main lines of business are mobile payments and cross border payments. First Global's proprietary leading edge technology enables the convergence of compliant domestic and cross border payments, money transfers, shopping and peer to peer payments. First Global enables its strategic partners and clients around the world with our leading edge financial services technology platform.
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.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE First Global Data Limited
Image with caption: "First Global Data Limited (CNW Group/First Global Data Limited)". Image available at: http://photos.newswire.ca/images/download/20161207_C6786_PHOTO_EN_833417.jpg
For further information: Andre Itwaru, Chairman and Chief Executive Officer, Telephone: 416.504.3813, Facsimile: 416.504.7092, Email: email@example.com