CALGARY, Aug. 3, 2016 /CNW/ - Ivrnet Inc. (TSXV: IVI)
("Ivrnet" or the "Corporation") announces it has established an
additional loan facility of up to $3,000,000 (the "Loan") from R.C. Morris & Company Special Opportunities
Debt Fund III LP (the "Lender") with an initial advance on the Loan
of $1,100,000 on closing.
The Loan matures in August, 2020 and has an interest rate of
17%, compounded monthly. In the event the Loan is not repaid at
maturity, the interest rate will become 24% until paid. A
structuring fee of $30,000 was
payable to the Lender at closing. The Lender will also receive, as
additional consideration for advances and any subsequent advance,
warrants to purchase such number of Ivrnet shares equal to 7% of
the principal amount of each advance divided by the market price of
the share on such date, for an exercise price per share equal to
the market price on such date. The Warrants expire no later than
five (5) years from date of issuance. Warrants and any shares
issued upon exercise of the warrants are subject to a 4-month hold
period from the date of closing or date of exercise of the
warrants.
At the time of closing Ivrnet entered into a monitoring services
agreement with an affiliate of the Lender, R.C. Morris & Company Capital Ltd., and
agreed to pay a monthly fee of $1,800.00 plus 0.16% of the aggregate amount of
the Loan advanced in any calendar month after closing.
The initial advance from RC Morris will be used both to reduce
operating costs and to advance the business. On the side of
cost reduction, the loan will allow Ivrnet to retire existing debt,
including expensive credit debt, and to move the Ivrnet Data Center
into a more cost effective fully managed third part data
center.
"The RC Morris loan allows Ivrnet to take significant steps
forward", stated David Snell,
Ivrnet's President and CEO. "Operationally, this loan allows
us to move our data center into the new ViaWest data center built
in Calgary. This is a world class data center owned by our
largest carrier partner, Shaw Communications, that will allow us to
meet all of our client's unique requirements without having to
operate our own internal center."
The initial RC Morris advance will increase Ivrnet's debt
servicing costs by $12,000 per month,
but Ivrnet estimates moving to the ViaWest Data Center will provide
long term savings of $13,000 per
month. Further, it will eliminate $389,000 of internal hardware expenditures that
are scheduled over the next 12 months.
Additionally, the initial loan advance will also be used for
Inbound marketing campaigns to generate more client opportunities
for the sales force, additional development resources and QA
resources to accelerate product development, HR resources,
expansion of the sales and finance teams, and general working
capital.
A broker fee of $55,000.00 was
paid to Omega Venture Group Inc. in connection with the closing of
the lending facility.
About Ivrnet
Ivrnet is a software and communications company that develops,
hosts, sells and supports value added business process improvement
and advertising software applications, delivered through the
traditional phone network and the Internet. These applications
facilitate automated interaction through personalized communication
between people; mass communication for disseminating information to
thousands of people concurrently and personalized communication
between people and automated systems. Ivrnet's applications are
accessible through nearly any form of communication technology, at
any time, from anywhere in North
America via voice, phone, fax, email, texting and the
Internet.
www.ivrnet.com
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 IVRnet Inc.
