VANCOUVER, Oct. 27, 2017 /CNW/ - NetCents Technology Inc. ("NetCents" or the "Company") (CSE: NC) (Frankfurt: 26N), has entered into a non-binding agreement for a drawdown equity facility of up to $5 million with Alumina Partners (Ontario) Ltd., a subsidiary of Alumina Partners LLC, a New York-based private equity firm. The agreement provides for equity private placement offerings, to be conducted in drawdowns made at the sole discretion of the company over a period of 60 months. Concurrent with entering into the equity facility, the company and Alumina Partners closed the first tranche offering under the facility for $500,000. Proceeds will be used for business expansion, marketing and general working capital.
This financing has been structured to allow the company to quickly access capital for growth. "While growth is necessary, we continue to remain aware of dilution for all shareholders and have tried to ensure it is minimized whenever possible," commented Clayton Moore, CEO & Founder, NetCents Technology Inc.
The amount of each offering will be made at the mutual agreement of the company and Alumina Partners. The offerings will be for units of the company consisting of one common share and one common share purchase warrant. The unit price for each offering will be set at negotiated discounts ranging from 15 per cent to 25 per cent of the market price of the shares, with the exercise price for the warrants in each offering being set at a 25-per-cent premium over the market price.
The first tranche offering under the facility for $500,000 is for 1,116,071 units consisting of 1,116,071 common shares at $0.448 and 1,116,071 common share warrants at $0.70.
Mr. Moore has not divested or reduced his holdings in any way in NetCents Technology Inc.
NetCents is a next generation online payment processing platform, offering consumers and merchants online services for managing electronic payments. The Company is focused on capturing the migration from cash to digital currency by utilizing innovative Blockchain Technology to provide payment solutions that are simple to use, secure and worry free. NetCents works with its financial partners, mobile operators, exchanges, etc., to streamline the user experience of transacting online. NetCents Technology is integrated into the Automated Clearing House ("ACH") and is registered as a Money Services Business (MSB) with FINTRAC, which ensures our consumer's security and privacy. NetCents is available for deposits from 194 Countries around the World, providing you with the freedom to choose to Pay. Your Way.™
On Behalf of the Board of Directors
NetCents Technology Inc.
Clayton Moore, CEO, Founder and Director
NetCents Technology Inc.
Suite 880, 505 Burrard St (Bentall 1),
Vancouver, BC, V7X 1M4
Cautionary Note Regarding Forward Looking Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE NetCents Technology Inc.
For further information: please visit the corporate website at www.net-cents.com or contact Robert Meister, Capital Markets at Ph: 604.638.7563 or email: [email protected]