AirIQ Inc.

AirIQ Inc.

October 07, 2010 16:33 ET

AirIQ Announces $500K Debt Financing

TORONTO, ONTARIO--(Marketwire - Oct. 7, 2010) - AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE:IQ), a supplier of Wireless Location-Based Services (LBS) and telematics technology, today announced that it has entered into a Credit Agreement with Eventi Credit Inc. ("Eventi") and Mosaic Capital Partners LP ("Mosaic") (collectively the "Lenders") for a loan of $500,000 (the "Loan").

Pursuant to the terms of the Credit Agreement, the Company executed a promissory note in favour of each of the Lenders for $250,000 each. The Loan has a maturity date of October 7, 2011 and bears interest at a rate of 15% per annum, accrued daily and compounded monthly. The Company paid a fee of $7,500 to each Lender in connection with the advance of the Loan. Interest only is payable on the Loan on a monthly basis in arrears, and the Loan is secured by a charge over all of AirIQ's property and assets. The Loan is not convertible into shares of the Company.

"We are very pleased with the vote of confidence from our Lenders," said Don Gibbs, President and Chief Executive Officer of AirIQ. "The Loan evidences their support in the Company's commitment to build revenues and manage costs to achieve sustained profitability and positive cash flow. We will use the funds to enhance our marketing efforts in the promotion of our vehicle rental program and our personal safety device," continued Mr. Gibbs.

Eventi is an arm's-length party to AirIQ. Mosaic is a shareholder of the Company and Vernon Lobo, a director and Chairman of AirIQ, is a managing director of Mosaic. During the Company's approval of the Loan, Mr. Lobo declared his conflict on the matter and abstained from voting at the board of directors meeting.

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of location based services (LBS) that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated use of proceeds, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

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.

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