CARLSBAD, CA, May 26, 2017 /CNW/ - Clarocity Corporation (TSXV: CLY) (the "Company" or "Clarocity") today announced that it has closed the second tranche of the previously announced (see August 31, 2016 and May 10, 2017 press releases) up to $5 million non-amortized term Facility ("Facility") provided by StableView Asset Management Inc. ("StableView") on behalf of managed accounts and funds with gross proceeds of $705,000.
"This additional funding support provides us with resources to further develop both our technology and our markets" said Shane Copeland, CEO of Clarocity Corporation. "We are confident that additional focus in these areas will provide us with great returns."
Clarocity issued an aggregate amount of $705,000 in principal amount of debentures ("Debentures") at a price of $1,000 per $1,000 principal amount of Debenture. Each Debenture has a term of 3 months which may be extended at the option of the lender for a further nine months. The Debentures bear an interest rate of 2% per month calculated and payable monthly in cash or in common shares ("Common Shares"), at the option of StableView, subject to reduction to 8% per annum if the lender extends the term for a further nine months. The Facility is secured against all of the Company's and its subsidiaries' property and assets and will be registered in all of the jurisdictions in which the Company and its subsidiaries carry on business. Clarocity also paid a drawdown fee of 20% of the amount drawn down under the Facility ($141,000) added to the principal amount of the Facility.
The Facility is convertible at $0.16 per share.
The funds are being used for general corporate purposes.
The transaction is subject to the submission of final documents and final approval of the TSX Venture Exchange.
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.
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 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. 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: visit www.clarocity.com or contact: Shane Copeland, CEO, Clarocity Corporation, 760-208-6460, firstname.lastname@example.org; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, email@example.com