Mobi724 Closes the First Tranche of Its Funding Round, $1.15M Private Placement Led by Timelo Investment Management

Montreal, Quebec--(Newsfile Corp. - January 28, 2021) -  Mobi724 Global Solutions Inc. (TSXV: MOS) ("Mobi724" or the "Company"), a fintech enabler of AI-enhanced payment card-linked incentives, announces that it has authorized a non-brokered private placement financing (the "Offering") and has successfully completed the first tranche of the Offering for aggregate proceeds of $1,150,000. The Company intends to close a second tranche prior to February 15, 2020.

The closing of the first tranche of the Offering was led by Timelo Investment Management Inc. ("Timelo"), facilitated by Echelon Wealth Partners ("Echelon") and consisted of the sale of 23,000,000 units (each, a "Unit") of the Company at a price of $0.05 per Unit (the "Purchase Price"). Each Unit is comprised of one common share of the Company (a "Common Share") and a three-quarters Common Share purchase warrant of the Company (a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (each a "Warrant Share") for a period of 3 years after the closing date at a price of $0.06 per Warrant Share subject to a warrant exercise acceleration providing that if the volume weighted price of the Common Shares is equal to or greater than $0.20 for a period of 20 consecutive trading days then the Company may anytime thereafter accelerate the expiry date of the Warrants to the date that is 30 days following the date on which the Company issues notice to all the Warrant holders of the new expiry date (and the Company will also issue a press release on the same date as it issues notice confirming the new expiry date of the Warrants).

The Offering was sold pursuant to exemptions from prospectus requirements. The proceeds from the sale of Units will be added to working capital in furtherance of the Company's business. The securities issued pursuant to the Offering are subject to a statutory hold period of four months and one day and completion of the Offering remains conditional to the final approval of the TSX Venture Exchange (the "Exchange").

Timelo, an investment advisory and portfolio management firm, subscribed for 20,000,000 Units and an additional 3,000,000 Units were acquired by certain officers, directors and members Mobi724's management team. As consideration for their involvement, Echelon earned a referral fee of $80,000 in cash and 1,600,000 broker warrants issued upon the same terms as the aforementioned Warrant Shares.

Marcel Vienneau, CEO of Mobi724 said: "We want to thank Timelo for the confidence that they have placed in our Company, as well as our management and directors who continue to participate in our funding rounds. We are optimistic about multiple growth opportunities."

The Units acquired by certain insiders are considered to be a "related party transaction" under Multilateral Instrument 61-101 and are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(a) and 5.7(a)) as neither the fair market value of the common shares distributed to, nor the consideration received from, interested parties exceeded 25% of the Company's market capitalization.

Conversion of Debt to Equity:

The Company also agreed to convert an amount of $45,000 as debt forgiveness related to unpaid fees owing to certain consultants upon the same terms and conditions of the aforementioned Offering. The issuance of 900,000 Units is subject to the approval of the Exchange.

About Mobi724 Global Solutions Inc.

Every Transaction is An Opportunity

Mobi724 Global Solutions Inc. (TSXV: MOS) is a fintech company that enables banks and merchants to offer their customers real-time payment card-linked incentives, in a white-label format. Mobi724's objective is to add a layer of AI-driven actionable intelligence to every payment transaction, creating engaging consumer experiences & generating incremental commercial opportunities to its clients.

Legal Disclaimer

Mobi724 cautions investors that any forward-looking statements or projections made by Mobi724 are subject to risks and uncertainties, that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described under Item 'Risk Factors and Uncertainties' in the Company's Management Discussion and Analysis, available on SEDAR.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute a solicitation to buy or sell any securities in the United States.

Investor Relations:

For further information, please visit www.MOBI724.com or contact:

Allan Rosenhek, CFO
Mobi724 Global Solutions Inc.
T: 514-394-5200 ir@mobi724.com
Eli Rozhansky, Investor Relations Coordinator
Mobi724 Global Solutions Inc.
T: 514-394-5200 ir@mobi724.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73093

info