OTTAWA, June 21, 2019 (GLOBE NEWSWIRE) -- Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a gift card, and loyalty marketing technology and services provider is pleased to announce it has secured $4,000,000 via BDC Capital. Under the terms of the loan, Ackroo will receive an initial tranche of $3,000,000 on closing plus access to an additional $1,000,000 disbursed should the Company identify another acquisition where these additional funds can be leveraged. The loan:
- Bears a 9.75% interest rate while EBITDA is under $750k per year and will reduce to a low of 7.5% once audited EBITDA is in excess of $1,100,000 per year
- Requires no principal payments to be made until April 2021 and will be done in the form of an annual excess cash flow sweep.
- Includes a 2.55% annual royalty on clients acquired with the facility during the term of the loan, excluding the first year.
- Includes a 0.5% bonus on sale or change of control payment to be made to BDC Capital should the company sell the business during the term of the loan
- Includes a 1.5% processing fee of the value of the facility (as the funds are tranched) plus $100 a month financing management fee
In connection with the debt financing the Company also announces it will close on the acquisition of IQ724 from Mobi724 with the proceeds from this debt facility on July 2nd, 2019.
“Establishing a growing relationship with lenders like BDC Capital is a key priority for Ackroo,” commented Steve Levely, Chief Executive Officer of Ackroo. “As we look to continue down our inorganic growth path having access to debt facilities like this one affords us the ability to continue to grow in a material way while reducing potential dilution to our shareholders. These funds will immediately go to work to close on our acquisition of IQ724 from Mobi724 and in turn will help add a significant amount of positive EBITDA to the Company. The partnership aligns perfectly with our goals to continue to simplify, consolidate and improve the merchant marketing landscape while keeping the best interest of the Company and our shareholders in mind. ”
About BDC Capital
BDC Capital is the investment arm of BDC - Canada’s only bank devoted exclusively to entrepreneurs. With $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.
About Ackroo
Ackroo provides merchants of all sizes a robust, cloud based multi-currency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card, loyalty and promotional transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo’s technology solution. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
For information, please contact:
Steve Levely
Chief Executive Officer | Ackroo
Tel: 613-599-2396 x730
Email: slevely@ackroo.com
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither 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.
Forward Looking Statements
This release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company’s ability to raise enough capital to support the company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.