First Global Data Limited Closes Second Tranche of $4 Million of Senior Secured Debentures
Press Release, News
TORONTO, ONTARIO - First Global Data Limited (the "Corporation") (TSX VENTURE:FGD) is pleased to announce that, further to its press releases of December 27, 2012 and February 12, 2013, the Corporation has secured the second half of this investment and as a result has issued an aggregate of $4 million of Series "B" 10% senior secured debentures (the "Debentures") to an institutional investor (the "Investor"). The issuance of the Debentures represents the balance of the $8 million (as announced in the Corporation's press release dated December 27, 2012) after the issuance of the $4 million of Series "A" 10% senior secured debentures in February 2013.
The Debentures bear interest at 10% per annum, payable quarterly. The Debentures mature on July 30, 2015 with the Investor having an option to extend the term of the Debentures for an additional two year term. The Debentures are secured against all of the assets of the Corporation. The Corporation also issued an aggregate of 7,111,111 shares to the Investor. For full details of the Debentures, please refer to the Corporation's press release of December 27, 2012.
The proceeds from the Debentures will be utilized for acquisitions and to expand its current and post-acquisition organic growth by increasing the reserve fund (in the money remittance business known as the "float"). A finder's fee of $240,000 was paid to an arm's length party.
"The proceeds from these Debentures means that the Corporation will continue with its acquisition and expansion plans with a focus of increasing top line revenues and profitability", stated Mr. Andre Itwaru, the President and Chief Executive Officer of the Corporation. "Among other things, the acquisitions will be focused on consolidating independent money service businesses serving attractive markets, will enable additional geographic expansion with a focus on obtaining key licenses, and will also facilitate the acquisition of complimentary technologies to enhance the Corporation's existing unique peer-to-peer and mobile payments capabilities with focus on international growth in strong markets such as Asia, South America and Gulf Co-operative Council (GCC)."