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Montreal, Quebec–(Newsfile Corp. – June 23, 2021) – Mobi724 Global Solutions Inc. (TSXV: MOS) (“Mobi724” or the “Company”), a fintech enabler of AI-enhanced payment card-linked solutions, announces that it has closed a non-brokered private placement financing (the “Offering”) for aggregate proceeds of $845,000 and has accepted a conditional loan offer of up to $2,300,000 from the Government of Québec, through its mandatary, Investissement Québec, for a period of 6 years (“Loan Offer”).

Completion of Private Placement:

The closing of the Offering was facilitated by Echelon Wealth Partners (“Echelon”) and consisted of the sale of 16,900,000 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 whole 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 also issues a press release on the same date confirming this new expiry date.

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”).

Arm’s length investors subscribed for 14,600,000 Units and an additional 2,300,000 Units were acquired by certain officers, directors and members of Mobi724’s management team. As consideration for their involvement, Echelon earned a referral fee of $58,400 in cash and 1,168,000 broker warrants issued upon the same terms as the aforementioned Warrant Shares.

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.

Loan Offer:

The closing of the Loan Offer is subject to the completion by the Company of certain closing conditions which the Company expects to complete, at the latest, within the next 30 days. The Loan Offer will be guaranteed by a hypothec and will be disbursed in three (3) tranches with the first tranche ($1,150,000) being paid at closing. The two subsequent tranches are to be disbursed by December 31, 2021 subject to compliance with the conditions set out in the Loan Offer. The Loan Offer contains certain restrictive covenants and guarantees customary to such transactions. The Loan Offer carries an annual interest rate of 10%, payable monthly. The loan provides for an 18-month capital repayment moratorium commencing from the date of the first disbursement, after which the loan principal will be repaid in 54 equal monthly instalments.

The Loan Offer provides that the Government of Québec, via Investissement Québec, may convert, at any time, all or part of the loan into common shares of the Company, at a conversion price equal to the prevailing market price of the shares on the day of the conversion less the maximum discount permitted by the rules of the Exchange but, in no case, shall the conversion price be less than the minimum allowable under such rules. Subject to final approval by the Exchange, on the disbursement of each tranche, the Company will issue a convertible debenture to the Government of Québec via Investissement Québec representing the tranche disbursed, in accordance with the terms of the Loan Offer.

Mathieu Laurin, CFO of Mobi724 said: “This equity financing of $845,000, when coupled with the equity raise of $1,280,500, which was announced in press releases on January 28th and February 9, 2021, is in alignment with the equity raise of $2,000,000 that the Company had referenced during the last AGM in December 2020 for the execution of its 2021 business plan.”

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 or contact:

Marcel Vienneau, CEO
Mobi724 Global Solutions Inc.
T: 514-394-5200 [email protected]

Eli Rozhansky, Investor Relations Coordinator
Mobi724 Global Solutions Inc.
T: 514-394-5200 [email protected]

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