BLAINE, Wash., Sept. 1, 2015 (GLOBE NEWSWIRE) -- Mobetize Corp. (OTCQB:MPAY) ("Mobetize" or "the Company") announces the closing of a recapitalization agreement with several existing investors and founders generating net proceeds of approximately $747,000. Proceeds from the transaction will provide Mobetize with greater financial flexibility and additional capital to support any potential increase in business demand.
Each investment unit consisted of one common share of the Company's stock and one half-warrant. The warrants are exercisable at $1.00 per share and are valid for three years from issue. No financing fees were associated with these private placements. As part of the financing, the Company's co-founders converted US$225,000 of unsecured loans into equity.
Stephen Fowler, CFO and Co-Founder, Mobetize Corp. stated, "We are very pleased with the continued support we have received from our existing investors. The financial flexibility gained from these transactions allows us to aggressively pursue several significant opportunities that we hope to be able to share with you in the near future."
With the exception of the shares to be issued on exercise of the warrants, the securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
About Mobetize Corp.
Mobetize Corp. (MPAY) is a global technology leader in mobile commerce payment solutions. Mobetize's brand-able platform enables telecom operators and others, to simplify the delivery of key financial and telecom services. Mobetize ensures end-to-end integration for services such as retail/online payments, mobile air-time top ups, domestic and international money transfers, P2P transfers and Visa/Mastercard programs on mobile devices. Mobetize seamlessly integrates and white labels their secure mobile money platform with their delivery partners to help increase their revenues, decrease customer service costs and increase loyalty to existing offerings. For more information, visit http://www.mobetize.com
This press release includes statements that are not historical in nature and may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company's previous filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.