VANCOUVER, British Columbia, Aug. 29, 2018 (GLOBE NEWSWIRE) -- TrackX Holdings Inc. (TSX.V:TKX)
(“TrackX” or the “Company”), is pleased to announce it has entered into secured loan
facilities with affiliates of G&G Private Capital, Inc. (the “Lenders”) for up to C$5.2 million
(collectively, the “Loan”) and has completed the first drawdown on the Loan for an aggregate amount of
C$2,600,000.
Outstanding principal of the Loan will bear interest at a rate of 10% per annum payable in cash payable
quarterly in arrears; or 12% in kind payable quarterly in arrears; or, subject to approval by the TSX Venture Exchange
(“TSX-V”), 13.5% payable in common shares of the Company (the “Common Shares”), valued at
the closing price on the TSX-V on the last trading day preceding payment, less the maximum allowable discount permitted by the
TSX-V. No repayment of outstanding principal is required before August 29, 2019. The Loan will mature on
August 29, 2022.
The proceeds of the Loan will be used by the Company to fund expansion of the TrackX team in sales, delivery
services, and customer success. This expansion will enable TrackX to accelerate the delivery of both existing customer expansion
opportunities and its growing pipeline of new customer implementations.
“TrackX is very pleased to complete this financing with G&G Private Capital,” said Tim Harvie, TrackX CEO.
“G&G’s knowledge of SaaS-based software and experience in the capital markets will provide tremendous strategic value to
TrackX.”
“Given the strength of TrackX’s leadership team, technology platform and presence within the growing Industrial
Internet of Things and Asset Management industries, we believe TrackX is uniquely positioned with significant potential,” said
George Small, G&G Principal. “This financing will not only strengthen TrackX’s balance sheet, but provide funds necessary for
TrackX to more readily achieve its potential in the industry.”
The Loan is secured against all current and future assets of the Company and its subsidiary, TrackX, Inc., as
outlined in a general security agreement corresponding to the loan agreements. To facilitate the Loan, broTECH Solutions LLC
agreed to release an existing security interest that it held over certain assets that the Company purchased from broTECH Solutions
LLC in June 2017. In consideration for the release of such security, the Company agreed to accelerate certain payments owing
to broTECH Solutions LLC pursuant to that transaction, including the early release of TrackX shares that were held in a voluntary
escrow
In connection with the first drawdown under the Loan, the Company has issued to the Lenders an aggregate of
800,000 non-transferable common share purchase warrants (the “Warrants”). On the date of any subsequent
drawdown under the Loan, the Company will issue to the Lenders 200,000 Warrants for each drawdown of C$650,000. Each
Warrant may be exercised by the holder to purchase one Common Share at an exercise price equal to the market price for the Common
Shares as of the date of the applicable drawdown for a period of four years from the date of issuance, subject to adjustment. The
Warrants, and the underlying Common Shares, will be subject to a four-month hold period from their date of issuance. The Company
has also paid financing and drawdown fees of 1.5% each to the Lenders concurrently with the first drawdown. Additional drawdown
fees of 1.5% of the amount of each drawdown will be payable concurrently with each subsequent drawdown.
Further drawdowns on the Loan will be available to the Company subject to:
- the Company having achieved an average fifteen percent (15%) increase in recurring and total revenue for two (2) successive
fiscal quarters commencing October 1, 2018; and
- the Company having achieved a positive adjusted EBITDA as calculated pursuant to the Company’s Management’s Discussion and
Analysis for the same successive fiscal quarters as above.
About G&G Private Capital
G&G Private Capital Inc. (“G&G”), based in Toronto, Canada is an independent finance and investment
company that provides private and public companies with debt and/or equity financing. G&G’s principals are experienced business
people and former entrepreneurs focused on the capital and investments needs of high-growth technology companies. G&G works
with profitable and near-profitable organizations and aligns itself with the long-term interests of its clients.
For more information, please contact:
George Small, G&G Private Capital Inc.
george.small@ggprivatecapital.com
1-416-460-7605
About TrackX
TrackX, based in Denver, Colorado, is an enterprise Industrial Internet of Things (IIoT) software platform provider leveraging
multiple auto-ID technologies for the comprehensive management of physical assets. TrackX’s Global Asset Management for Enterprises
(GAME) platform enables the IIoT by providing unique item level tracking, workflow processing, event management, alerts and
powerful analytics to deliver solutions across a growing number of industries. This platform creates unprecedented visibility
and business intelligence of man-to-machine and machine-to-machine interaction. TrackX delivers significant value to a
growing list of Fortune 500 companies and for customers in industries such as transportation, beverage, brewery, healthcare,
hi-tech, hospitality, mining, agriculture, horticulture, manufacturing and government.
For more information, please contact:
Tim Harvie, TrackX Holdings
Inc.
tharvie@trackx.com
1-303-325-7300
Sean Peasgood, Sophic Capital
Sean@SophicCapital.com
1-647-361-8358
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain
“forward-looking statements” under applicable Canadian securities legislation, including statements in respect of future drawdowns
under the Loan and the proposed use of proceeds. Forward looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may
cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements.
All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will
or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities
are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be
no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company
disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result
of new information, future events or otherwise, except as required by law.
