VANCOUVER, BC–(Marketwired – June 14, 2016) –
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES
MediaValet Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloud-based digital asset management software, is pleased to announce that it has entered into a loan agreement (the “Loan Agreement”) with Mr. Rob Chase (the “Lender”) with respect to a loan facility for a principal amount of up to $1,000,000, subject to certain parameters, in favour of the Company (the “Loan”), as evidenced by a promissory note. The Loan is repayable in full, 36 months after the Closing Date and will bear interest at a rate of 15% per annum. Interest is payable monthly with the first payment due thirty (30) days after the first advance. The Company has entered into a general security agreement with the Lender as security for the Loan.
“As our business continues to accelerate we’ve been exploring ways to support our expanding go-to-market and product development initiatives while keeping our cost of capital as low as possible,” commented David MacLaren, Founder and CEO of MediaValet Inc. “In today’s market, the financing model that we found most appealing was that used by many successful SaaS companies today. Based on recurring revenue, SaaS lending provides growing companies with a non-dilutive, and relatively low cost way of financing their operations.”
Continued MacLaren, “After a careful review of several such facilities, the Board selected the facility proposed by Mr. Chase, which offered a similar structure but with more appealing terms. All of us at MediaValet appreciate Rob’s unwavering support and confidence.”
The proceeds of the Loan will be used by the Company to support its growing sales and marketing initiatives; for accelerating new product enhancements, integrations and partnerships; and for general corporate purposes. No finder’s fees were issued in connection with the Loan but a one-time setup fee of $10,000 was paid to the Lender.
The Lender is a director of the Company. As such, the Loan constitutes a “related party transaction” as defined under TSX Venture Exchange Policy 5.9 — Protection of Minority Securityholders in Special Transactions andMultilateral Instrument 61 — 101 Protection of Minority Security Holders in Special Transactions. The Loan remains subject to the approval of the TSX Venture Exchange.
About MediaValet Inc.
MediaValet stands at the forefront of the cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available on 26 highly secure and hyper scalable data centers around the world, MediaValet is uniquely equipped to meet the digital asset management needs of any organization, no matter its size, its industry or its location. Cutting-edge technology, exceptional product design, and unlimited friendly customer service are at the core of MediaValet’s DNA — ensuring exceptional customer and user experiences are delivered at all times.
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“Neither the 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.”
For further information, please contact:
Corporate Office
David MacLaren
CEO
[email protected]
(877) 688-2321
Investor Relations
Babak Pedram
[email protected]
(416) 644-5081
