NetCents Announces Secured Loan for an Aggregate of $1,000,000 from a Related Party
Vancouver, B.C., April 30, 2018 – NetCents Technology Inc. (“NetCents” or the “Company”) (CSE: NC) is pleased to announce that it has entered into a loan agreement (the “Loan Agreement”) with Mr. Jean-Marc Bougie (the “Lender”) with respect to a loan for a principal amount of $1,000,000 (the “Loan”).
The Loan is repayable in full (the “Maturity Date”) on the earlier of: (i) [six months after the Closing Date] (ii) the date the Company completes an aggregate $1,000,000 in equity financing (the “Equity Financing”). The Loan bears interest at a rate of 8% per annum, calculated daily and payable on the Maturity Date. At any time prior to the Maturity Date, the Lender has the option to convert the principal amount of the Loan into common shares in the capital of the Company (the “Shares”) at the market price of such Shares at the end of day on [April 27, 2018]. As security for the payment of the Company’s obligations under the Loan Agreement, the Company has, concurrently with the Loan Agreement, granted the Lender a security interest in all personal property of the Company.
The proceeds of the Loan will be used by the Company to provide general working capital. As consideration for advancing the Loan, the Company will pay the Lender a one-time payment of $30,000 and issue 369,000 common share purchase warrants of the Company (“Warrants”) by private placement (the “Issuance”). Each Warrant will entitle the Lender to purchase one Share (a “Warrant Share”) at the market price [per Share at the end of day on April 27, 2018] for a 48 month term from the date of Issuance.
Jean-Marc Bougie is a director of the Company. As such, the Loan constitutes a “related party transaction” as defined under Multilateral Instrument 61 – 101 Protection of Minority Security Holders in Special Transactions.
The above transaction is expected to be completed less than 21 days after the date of this news release. The Company is of the view that the funds are required as soon as possible to advance the Company’s business, and a delay of 21 days would be prejudicial to the Company.
NetCents is a next generation online payments 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
For further information: please visit the corporate website at www.net-cents.com or contact Gord Jessop, President: firstname.lastname@example.org
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.