TORONTO, ONTARIO--(Marketwire - Feb. 12, 2013) - First Global Data Limited (the "Corporation") (TSX VENTURE:FGD) is pleased to announce that, further to its press release of December 27, 2012, the Corporation has issued an aggregate of $4 million of Series "A" 10% senior secured debentures (the "Debentures") to an institutional investor (the "Investor"). The Corporation and the Investor are working towards establishing an escrow arrangement for the remaining $4 million (the "Escrowed Funds") of Debentures. The Escrowed Funds are intended to be released to the Corporation concurrent with the Corporation signing binding offers for future acquisitions and satisfaction of certain other release conditions. The Escrowed Funds may be released in one or more installments.
The Debentures bear interest at 10% per annum, payable quarterly. The Debentures mature on February 7, 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 issued an aggregate of 3,076,923 shares to the Investors. 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 future 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"). As at the date hereof and including the proceeds from the Debentures, the Corporation currently has $6.5 million in treasury. A finder's fee of $240,000 was paid to an arm's length party.
"The proceeds from these Debentures along with its current cash balance means that the Corporation is well positioned to proceed with its acquisition and expansion goals," stated Mr. Andre Itwaru, the President and Chief Executive Officer of the Corporation. "The acquisitions will be focused on consolidating independent money remitters serving attractive markets as well as acquiring complimentary technologies to enhance the Corporation's existing platform to capitalize on its 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 focused on the delivery of international money remittances, mobile payments, and mobile financial services technology. The Corporation's current business is consumer-to-consumer money transfer services, which are provided under its Remitx™ brand. This service enables persons to send money from one country to a beneficiary in another country securely and in compliance with regulatory guidelines. The service also enables persons to send money to a beneficiary domestically within the same country.
The Corporation's customers are the senders of money. The Corporation's primary customers are expatriates and migrant workers in Canada and the United States who send money to their countries of origin, which money transfers are known as remittances. Other customers of the Corporation include individuals without traditional banking relationships, traditional bank customers in need of emergency money transfer services and tourists without local bank accounts.
The Corporation currently accepts funds only from customers in Canada and the United States, which funds are accepted at storefronts (in the form of cash or via point of sale devices (POS)) and online via electronic funds transfer and chequing services. Through its electronic transaction infrastructure, the Corporation is currently able to dispense such funds to approximately 49 countries worldwide via its third party agent and partner network.
The Corporation's technology platform allows it to deliver monies to the destination point quickly and in full compliance with legislative and regulatory guidelines.
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.
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.