CALGARY, Dec. 18, 2017 /CNW/ - Clarocity Corporation
(TSXV:CLY; OTCQB:CLRYF) (the "Company" or
"Clarocity") today announced that it has closed the second
tranche of the previously announced (see November 17, 2017 press release) Debt Facility
("Facility 3.0") provided by StableView Asset Management
("StableView") on behalf of managed accounts and funds with
gross proceeds of $1,200,000.
Clarocity issued an aggregate amount of $1,320,000 in principal amount of debentures
("Debentures") at a price of $100 per $100
principal amount of Debenture. The Debentures will bear an interest
rate of 24% per annum payable quarterly in common shares
("Common Shares") or cash, at the option of the
holder. The Corporation or StableView may on 60 days notice
require repayment of the outstanding Debentures together with any
accrued and/or unpaid interest. The Debentures have been
guaranteed by the Company's wholly-owned subsidiary, Valuation
Vision, Inc. (the "Guarantor"), and have been secured
against all of the Company's and the Guarantor's property, assets
and patents and will be registered in all of the jurisdictions in
which the Company and the Guarantor carry on business.
In addition, the Company issued 3,600,000 common share purchase
warrants ("Warrants"). Each Warrant entitles the holder
thereof to purchase one Common Share in the capital of the Company
at $0.10 per Common Share,
exercisable until November 14,
2018.
The Company also paid a drawdown fee of 10% of the amount drawn
under the Facility which has been added to the principal amount of
Facility 3.0.
The issuance of Debentures and Warrants to StableView is a
related party transaction under TSX Venture Exchange Policy 5.9 and
Multilateral Instrument 61-101. The Company is relying on an
exemption from the formal valuation and minority approval
provisions of Multilateral Instrument 61-101 in reliance on
sections 5.5(a) and 5.7(a) on the basis that the aggregate fair
market value of the transaction (including the first tranche),
insofar as interested parties are involved, does not exceed 25% of
the market capitalization of the Company.
The proceeds from the Facility will be 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.
Forward-Looking Information
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
