New financing retires $5.8 million existing debt facility and
provides $1.5 million in working
capital
DENVER, CO, Feb. 26, 2015 /PRNewswire/ - Intermap
Technologies Corporation (TSX:IMP), (ITMSF:BB), a leading provider
of geospatial solutions on-demand created from its uniform,
high-resolution 3D digital models of the earth's surface, today
announced that it has entered into an agreement to complete a
non-brokered US$7.3 million debt
financing (the "Debt Financing") with Vertex One Asset Management
("Vertex") of Vancouver, BC.
"The financing provides the Company with the resources to retire
an outstanding note payable that became due earlier this month,
consolidate debt, and add the working capital needed for the
execution of our business plan," said Todd
Oseth, Intermap's President and CEO. "Partnering with
Vertex, a leading Canadian fund, provides Intermap with the
financial backing required to complete the Company's transformation
into a 3DBI geospatial software-driven company, as well as support
the Company's continued pursuit of Spatial Data Infrastructure
(SDI) opportunities around the world. We are pleased that
Vertex has recognized Intermap's strategic positioning in, and
vision for, the evolving geospatial technology
sector."
The promissory notes granted under the Debt Financing will
mature 12 months from the date of issuance. Simple interest
is payable at maturity at an annual rate of 25.0%. As
additional consideration for the Debt Financing, the Company
entered into a royalty agreement with Vertex, pursuant to which the
company agreed to pay Vertex a 17.5% royalty on its net
revenues. Under the terms of the financing, Vertex assumed
the obligations of an outstanding $5.0
million note (plus accrued interest of $800,000), which was issued on February 6, 2014, and became due on February 6, 2015. Vertex subsequently
retired the February 2014 note
obligation, and the 12,367,054 conversion shares associated with
the note were cancelled. The Debt Financing is subject to a
prepayment right by the Company at 125% of the principal amount at
anytime, subject to a 30 day notice period.
The Debt Financing is expected to be completed on or about
February 27, 2015, and is subject to
receipt of all necessary approvals and satisfaction of all other
customary closing conditions.
The Company intends to use the net proceeds of the Debt
Financing for general corporate purposes.
The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold in the United States absent registration or
applicable exemption from those registration requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Vertex
Vertex is a Vancouver based
asset management firm currently handling $2.1 billion in assets. Vertex looks for
misvalued companies with a catalyst in the near future, while also
paying attention to valuation relative to industry peers. It seeks
to achieve superior long term performance by identifying companies
that have low price-to-value metrics, have put themselves up for
sale, or companies where a misvaluation has occurred within the
capital structure of the company. The firm currently manages six
funds offered to direct clients, advisors and institutions. The
Vertex Fund, Vertex Managed Value Portfolio and Vertex Arbitrage
Fund are memorandum based funds. The Vertex Enhanced Income Fund,
Vertex Growth Fund, and Vertex Value Fund are prospectus-based,
long-only funds.
About Intermap Technologies
Headquartered in Denver,
Colorado - Intermap (www.intermap.com) is an industry leader
in geospatial solutions on demand with its secure, cloud based
Orion Platform™. Through its powerful suite of 3DBI
applications and proprietary development of contiguous databases
that fuse volumes of geospatial data into a single source, the
Orion Platform is able to provide location- based solutions for
customers in diverse markets around the world. For more
information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes
forward-looking statements. The words "anticipate", "expect",
"project", "estimate", "forecast" and similar expressions are
intended to identify such forward-looking statements. Although
Intermap believes that these statements are based on information
and assumptions which are current, reasonable and complete, these
statements are necessarily subject to a variety of known and
unknown risks and uncertainties. You can find a discussion of such
risks and uncertainties in our Annual Information Form and other
securities filings. While the Company makes these forward-looking
statements in good faith, should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those
expected. Accordingly, no assurances can be given that any of the
events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what benefits that the Company
will derive therefrom. All subsequent forward-looking statements,
whether written or oral, attributable to Intermap or persons acting
on its behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements contained in
this news release are made as at the date of this news release and
the Company does not undertake any obligation to update publicly or
to revise any of the forward-looking statements made herein,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities
law.
SOURCE Intermap Technologies Corporation