Clip Money Inc. announces the closing of a non-brokered private placement of an unsecured convertible note for US$3,000,000 to Cardtronics Inc., highlighting confidence in Clip Money’s solution. Additionally, the company closed a private placement of 6,876,500 common shares at CAD$0.20 per share for gross proceeds of US$1,000,000 to insiders. The Convertible Note accrues simple interest at a rate of 13% per annum and is due on July 18, 2030, with payment options available on the Maturity Date. The Financings represent related-party transactions and are exempt from formal valuation and minority shareholder approval requirements.

Brian Bailey, president and COO of Clip Money, acquired 3,438,250 Common Shares at a price of CAD$0.20 per share in connection with the Equity Financing. Prior to this, Mr. Bailey beneficially owned 7,233,766 Common Shares, a convertible note, warrants, and options, representing approximately 6.86% of issued Common Shares. Following the Equity Financing, Mr. Bailey will own approximately 9.51% of issued Common Shares on a non-diluted basis. Mr. Bailey intends to evaluate his investment in the Company and may increase or decrease his shareholdings in the future.

Clip Money Inc. operates a multi-bank self-service deposit system for businesses, allowing users to make deposits outside of their bank branch at top retailers and shopping malls. The Company’s network provides a convenient solution for business banking deposits in metropolitan statistical areas across Canada and the United States. The Company intends to use the net proceeds from the Financings for network expansion, customer acquisition, new unit capital expenditures, business operations, technology, and general corporate purposes.

Read more at GlobeNewswire: Clip Money Inc. Announces US$4,000,000 Financings