TORONTO, ONTARIO--(Marketwired - Dec. 7, 2017) - Tangelo Games Corp. ("Tangelo" or the "Company") (TSX VENTURE:GEL), a leading developer and operator of social casino games, announces that the Company has satisfied the outstanding conditions of the waiver and amendment agreement (the "Amendment") with its lenders to amend certain terms of its outstanding credit agreement (see press release dated November 27, 2017). Tangelo previously completed a secured debt financing pursuant to an amended and restated credit agreement dated November 16, 2015, which amended the terms of a prior credit agreement dated January 30, 2015, as amended among the Company, as borrower, the subsidiaries of Tangelo, as credit parties, a syndicate of lenders (the "Lenders"), and the Lenders' administrative agent, Third Eye Capital Corporation (the "Facility").
The Company received TSX Venture Exchange approval to amend the term of 35,000,000 non- transferrable warrants issued by the Company to the Lenders. These warrants will now expire on April 30, 2019, contemporaneous to the new maturity date of the Facility in connection with the Amendment.
The Company has also entered into settlement agreements (the "Settlement Agreements") with two creditors whereby Tangelo has agreed to issue common shares of the Company at a deemed price of $0.05 per common share in full and final settlement of the amounts owing to such creditors (the "Shares for Debt Settlement"). Pursuant to the Settlement Agreements, $181,000 in debt will be settled and a total of 3,620,000 common shares will be issued to the creditors, which would represent less than 2% of the issued and outstanding common shares of Tangelo following the completion of the Shares for Debt Settlement. The board and management of Tangelo believe that the proposed Shares for Debt Settlement is in the best interests of the Company as it conserves cash.
The Shares for Debt Settlement has been conditionally approved by the TSX Venture Exchange and the related common shares will be issued today.
About Tangelo Games
Tangelo Games Corp., the parent company of Diwip and Akamon, formerly known as Imperus Technologies Corp., is a developer of social and mobile gaming for PC, Mac, iOS and Android platforms. Diwip and Akamon design, develop and distribute their top ranked social casino- themed games within online social networks (such as Facebook) and mobile platforms (such as Android and iPhone). All of the Diwip and Akamon games are free to play and generate revenue primarily through the in-game sale of virtual coins.
Caution Regarding Forward-Looking Information:
Certain statements in this press release may constitute "forward-looking information" which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this press release, such forward-looking information may use such words as "may", "will", "expect", "believe", "plan" and other similar terminology. Forward-looking information includes, but is not limited to, statements regarding the Amendment, the amendment of the term of the Warrants, the shares for debt settlement and the business of the Company. Forward-looking information is provided for the purpose of presenting information about management's current expectations relating to the future events and the operating performance of the Company, and readers are cautioned that such information may not be appropriate for other purposes. The forward-looking statements involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, regulatory requirements, general economic, market or business conditions and future developments in the sectors of the economy in which the business of Tangelo operates. The foregoing list of factors is not exhaustive. Please see the Company's short form prospectus dated March 27, 2015, the Company's Annual Information Form dated November 11, 2015 and other documents available on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether a result of new information, future results or otherwise, except as required by law.
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