December 9, 2015 - VANCOUVER, BRITISH COLUMBIA – Mobio Technologies Inc. (TSXV: MBO; OTCQX: MBIOF), (“Mobio” or the “Company”) is pleased to announce that it has entered into a term sheet with NU2U Resources Corp (the “Lender”), a company controlled by Lance Tracey, to obtain financing (the “Financing”) by way of a secured convertible debenture in the principal amount of $375,000 (the “Note”).
Lance Tracey co-founded Sutton Group, a Canadian Real Estate Franchise in 1983. Mr. Tracey and Sutton have been early stage investors in many successful Internet startups over the years, including Look Communications and Internet Direct. His most recent exit is Peer 1 Networks, selling to Cogeco Cable for $635 million in 2013, where Lance was Chairman and Co-Founder. Lance is an active user and early adopter of technology both personally and through his businesses. A life-long resident of Vancouver, he has funded dozens of startups through the Code Group of Companies.
The proceeds of the Financing will be used to further build the Company’s two subsidiaries, Twenty Year Media Corp. (“TYM”) and Strutta.com Media Inc. (“Strutta”).
In recent months, TYM has brought six new theatres into its Emerging Pictures (wholly-owned by TYM) distribution network. Additionally, speciality releases distributed by Emerging Pictures in 2015 (Soaked in Bleach, I Am Chris Farley) opened up access to new markets such as San Francisco, Pittsburgh, Seattle, Long Beach, Ottawa, and Detroit. TYM’s proprietary technologies for social media analysis and management are also being showcased at the upcoming ArtHouse Convergence conference in Salt Lake City, UT, next month.
Two movies Emerging Pictures sub-distributed, Love & Mercy (Roadside Attractions) and Tangerine (Magnolia Pictures), are also garnering speculation as possible candidates for “best picture” at next year’s Oscars. According to Hollywood Reporter, the short list of 15 films being considered for best documentary at the Oscars include five films carried by Emerging Pictures: Cartel Land, Heart Of A Dog, Listen To Me Marlon, Meru, and The Look Of Silence.
In December, Strutta is debuting its latest version to a limited number of users before making it fully available early in 2016. The latest version of Strutta’s software includes sweeping innovations in technology and user experience that are expected to boost conversion rates. Built on Strutta’s promotions API, the new platform also offers industry-leading robustness which can scale up to millions of contest participants.
The Note will bear interest at a rate of 12% per annum, accrued and calculated monthly, and will mature on June 1, 2016. At the option of the Lender, the Note (including interest accrued thereon) is convertible into common shares of the Company at a price equal to the volume weighted average closing price of the Company’s shares for the five consecutive trading day period immediately preceding the conversion date, subject to such minimum conversion price as may be prescribed by the policies of the TSX Venture Exchange. The Financing is expected to close on or about December 15, 2015 (the “Closing Date”), and remains subject to the approval of the TSX Venture Exchange.
In connection with the Financing, the Company has also agreed to effect a consolidation of all of the issued and outstanding common shares of Mobio on the basis of every ten old common shares being consolidated into one new common share (the “Consolidation”). The Consolidation is expected to be effective on or about December 11, 2015.
As further consideration to the Lender for the Financing, the Company will also issue to the Lender share purchase warrants to purchase up to 1,250,000 common shares of the Borrower, on a post-Consolidation basis (the “Warrants”). The Warrants will have a life of one year from the Closing Date, and the exercise price of the Warrants shall be set at a price per share equal to greater of (i) the volume weighted average closing price of the Company’s shares for the three trading-day period immediately prior to the Closing Date, or (ii) the closing price of the Company’s shares on the date prior to the Closing Date.
Mobio is a publicly traded company on the TSX-V and the OTCQX, headquartered in Vancouver, BC. Mobio is the parent company to Strutta and Twenty Year Media. Strutta is a social promotions platform that helps marketers bring potential customers from stranger to fan to customer, and Strutta’s Promotions API provides a technology platform that facilitates social media competitions & campaigns for global brands. Twenty Year Media is a media and technology company developing advanced technologies for the entertainment and motion picture sector. Twenty Year Media owns and operates Emerging Pictures, a US-based all-digital film and alternative content distribution network. Using data and social media analysis together with seamless digital delivery to theaters, Emerging Pictures enables content owners and exhibitors to be more effective and innovative in their distribution strategies and programming decisions. Emerging Pictures works with content and data partners such as Sony Pictures Classics, The Weinstein Company, Magnolia Pictures, IFC Films, and Vimeo to maximize the value of their content. For more information visit http://www.mobio.net.
For additional information contact: Etienne Moshevich Transcend Resource Group, Investor Relations Tel: 604-681-0084 firstname.lastname@example.org
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS. Other than statements of historical fact, all statements included in this news release, including, without limitation, statements regarding future plans and objectives of Mobio are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those expected by Mobio are those risks described herein and from time to time, in the filings made by Mobio with Canadian securities regulators. Those filings can be found on the Internet at: http://www.sedar.com.
Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.