01 Communique Laboratory Inc V.ONE

Alumina Partners Draw Down Facility

[cabbieJBJ]

Remember this: On the Zoom call, I submitted a question asking how much of this equity facility has been drawn down.  My question was not put forward.

01 Communique Arranges a $5 Million Equity Facility with Alumina Partners

TORONTO, ON – October 7, 2020. 01 Communique Laboratory Inc. (ONE:TSX-V) (the "Company") has entered into a non-binding agreement for a drawdown equity facility (the "Draw Down Facility") of up to $5 million with Alumina Partners (Ontario) Ltd. ("Alumina Partners"), a subsidiary of Alumina Partners LLC, a New York-based private equity firm. The agreement provides for equity private placement offerings, to be conducted in drawdowns of up to $250,000 per tranche over a period of 24 months with the timing of each tranche to be made by the Company at its sole discretion. The amount and terms of each tranche will be subject to the mutual agreement of the Company and Alumina Partners.

“This financing has been structured to allow for quick access to capital for growth when it is required. We believe a financing along the lines of this equity facility provides us with the ability to access the capital we require when we need it while at the same time minimizing shareholder dilution," commented Andrew Cheung President and CEO for 01
Communique.

“We are delighted to support 01 Communique as they work to commercialize the next generation of encryption,” added Adi Nahmani, Managing Member of Alumina Partners. “While conventional cryptographic techniques have carried us through the present day, they will no longer offer any protection in a post-Q-Day world. With daily progress announced by the global industry leaders in quantum computing, it is only a matter of time before quantum-grade encryption becomes mission critical for all secure computing use cases. 01 Communique’s effective and resource-light solution is already available today across the IronCAP family of products. We look forward to watching management continue to improve their software offerings and expand their user base in preparation for Q-Day.”

[pedro7]

Yes that would be interesting to find out Cabbie. I would think they would have to report in the quarterly report but no mention.

[cabbieJBJ]

There could be a substantial number of shares issued, and resultant dilution.  It's ok to talk about "no debt", but the share count is 91.8M reported in the Q2 financials versus 80.2 a year ago, an increase of 11.6M shares (+14.5%).

[cabbieJBJ]

Alumina does not appear to be a reason for the 11.6M share increase.  Thus, the reason must be exclusively the exercise of warrants.  Here is the relevant commentary on Alumina in the Q2 MD&A" On October 7, 2020 the Company entered into a non-binding agreement for a drawdown equity facility with a private equity firm. The agreement provides for equity private placement

[blue55]

Follow the money fools.  

[cabbieJBJ]

Is this what you mean blue? The Canada Emergency Business Account (“CEBA”) provides interest-free bank loans, guaranteed by the government of Canada, of up to $60,000 to small businesses that qualify. The Company’s loan payable consists of a $60,000 CEBA loan that is interest free and repayable by December 31, 2022 with up to $20,000 of the loan being forgiven conditional upon the Company

[QuantumTime]

So does Cheung owe Boris Kikely money?  And if so, so wha?

[cabbieJBJ]

Exactly!