First Global Data Limited Closes Second Tranche of $4 Million of Senior Secured Debentures
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)."
About First Global
The Corporation, through its wholly owned subsidiary, First Global Data Corporation, is in the business of delivering among other things, online and mobile money consumer services internationally. Services include international money remittance, mobile peer to peer transactions, mobile payments, online and mobile payroll and bill payment solutions. First Global also enables its strategic partners and clients around the world with leading edge financial services technology products. First Global's goal is to become the global leader in the mobile money and online financial services sector. First Global maintains a strong focus on compliance and holds licenses in the USA, Canada and other regions around the world. The Corporation's electronic transaction infrastructure currently extends to approximately 49 countries worldwide through its own and third party agent and partner network, with a focus on significant expansion globally.
Neither TSX Venture Exchange nor its Regulation 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.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.