CALGARY, AB, Feb. 12, 2021 /CNW/ - Katipult Technology Corp.
(TSXV: FUND) ("Katipult" or the "Corporation"), a
provider of industry leading and award-winning software
infrastructure for powering the exchange of capital in equity and
debt markets, is pleased to announce that it has entered into an
agreement for a C$3.0 million
investment (the "Investment") from Canaccord Genuity Group
Inc. ("Canaccord Genuity").
Proceeds from the Investment will be used to fund Katipult's
growth and market expansion plans, with a focus on strengthening
its existing market position in the Canadian capital markets, and
expanding its presence in the U.S., UK and Australian capital
markets.
The Investment will be in the form of C$3.0 million of unsecured subordinated
convertible debentures (the "Debentures"), with no interest
(0% coupon) and will mature five years from the closing date of the
Investment (the "Maturity Date") at which time, the
principal amount of the Debentures will become due and payable.
Closing is expected to occur on or before March 5, 2021. Until the Maturity Date,
Canaccord Genuity may convert the Debentures into common shares in
the capital of the Corporation (the "Common Shares") at a
conversion price of $0.23 per Common
Share. As part of the Debenture financing, the Corporation has
granted Canaccord Genuity warrants to acquire 12,000,000 Common
Shares (the "Warrants"), exercisable at any time on or prior
to the Maturity Date. Each Warrant is exercisable into one Common
Share at an exercise price of $0.25
per Common Share.
No finder's fees, broker's fees and/or commissions will be paid
in connection with the Investment.
Under applicable Canadian securities law, the Debentures, the
Warrants and the underlying Common Shares to be issued pursuant
thereto will be subject to a hold period of four months and a day
from the date of issuance of the Debentures and the Warrants.
Closing of the Investment is subject to, among other things, the
approval of the TSX Venture Exchange ("TSXV").
About Katipult
Katipult (www.katipult.com) is a provider of industry leading
and award-winning software infrastructure for powering the exchange
of capital in equity and debt markets. Our cloud-based platform and
solutions digitize investment workflow by eliminating transaction
redundancy, strengthening compliance, delighting investors, and
accelerating deal flow. Katipult provides unparalleled adaptability
for regulatory compliance, asset structure, business model, and
localization requirements.
Cautionary Note Regarding Forward Looking Statements
Certain disclosure in this release, including statements
regarding the growth and market expansion plans of the Corporation,
the expected closing date of the Investment and the use of proceeds
therefrom constitute forward-looking statements. In making the
forward-looking statements in this release, the Corporation has
applied certain factors and assumptions that are based on the
Corporation's current beliefs as well as assumptions made by and
information currently available to the Corporation, including, but
not limited to, the ability of the Corporation to execute on its
growth and market expansion plans, the approval of the Investment
by the TSXV, the Corporation's anticipated cash needs, that the
cash available to the Corporation is as expected, the Corporation's
product will continue to operate as expected, the industry will
continue to see value in the Corporation's products, the
Corporation will be able to recruit talented and experienced sales,
support and other individuals required to execute the Corporation's
plans, and that the Corporation's employees, consultants,
customers, suppliers and other stakeholders will be able to manage
successfully throughout the Covid-19 pandemic. Although the
Corporation considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect, and the forward-looking statements in this release are
subject to numerous risks, uncertainties and other factors that may
cause future results to differ materially from those expressed or
implied in such forward-looking statements. Such risk factors may
include, among others, the risk that the Corporation is unable to
execute on its growth and market expansion plans, that the TSXV
does not approve the Investment, that cash available to the
Corporation is not as expected, failure to manage growth
successfully, lengthier than anticipated sales and implementation
cycle, cyber risks, risks related to cloud based solutions, failure
to continue to adapt to technological change and new product
development, dependence on key personnel, competition, intellectual
property risks, economic conditions, the financial and economic
fallout due to the Covid-19 pandemic, privacy concerns and
legislation, regulatory environment, risk associated with a change
in the Corporation's pricing model, risk of defects in the
Corporation's solution, dependence on market growth, operational
service risk, dependence on partners and delay or failure to
realize anticipated benefits of key account installations. Readers
are cautioned, especially in these uncertain times, not to place
undue reliance on forward-looking statements. The Corporation does
not intend to, and expressly disclaims any intention or obligation
to, update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as
required by law.
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.
SOURCE Katipult Technology Corp.
