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
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
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.
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
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