TORONTO, ONTARIO — (Marketwired) — 12/21/15 — Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS), is pleased to announce that the Company–s consumer finance segment has entered into an agreement with the investment management arm of one of Canada–s leading insurance companies (the “Lender”) to amend and increase the Lender–s existing debenture facility (the “Debenture Facility”) with the Company (the “Amendment”).
Currently, the Company has issued one debenture to the Lender under the Debenture Facility for $3 million, maturing in March 2018 and a current interest rate of 12% (the “Initial Debenture”).
The principal amendments to the Debenture Facility include, among others, the following terms:
As part of the Debenture Facility, the Company will issue to the Lender on closing 2,000,000 common share purchase warrants, with an exercise price of $0.67, and a term of three years, exercisable into 2,000,000 common shares of the Company. The warrants and the underlying common shares shall be subject to a four month hold period from the date of issuance of the warrants.
“We are delighted to have achieved this essential milestone which strengthens our treasury capacity and significantly reduces our cost of funds,” noted Michael Hilmer, CEO of Dealnet. “The fact that this facility is effectively an increase at a lower cost from an existing funder illustrates the confidence in our platform, and the latitude of our originated loan capacity. We look forward to adding to our underwriting capacity on an ongoing basis.”
The closing of the Amendment and the issuance of the warrants is conditional upon certain customary conditions being met, including final documentation and obtaining any necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Forward Looking Statement
This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company–s Management–s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management–s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
About Dealnet Capital Corp.
Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Dealnet Capital Corp.
Michael Hilmer
CEO
+1-416-420-5529
Dealnet Capital Corp.
Nicole Marchand
Investor Relations
+1-416-428-3533
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