Clip Money Inc. Announces US$4,000,000 Financings

Core Viewpoint - Clip Money Inc. has successfully closed two private placements, raising a total of US$4,000,000 (approximately CAD$5,501,200) to support its business operations and expansion efforts [1][2][9]. Financing Details - The first financing involves a non-brokered private placement of an unsecured convertible note for gross proceeds of US$3,000,000 (CAD$4,125,900) to Cardtronics Inc., which is Clip Money's largest shareholder and strategic partner [1]. - The second financing consists of 6,876,500 common shares sold at CAD$0.20 per share, generating US$1,000,000 (CAD$1,375,300) from two insiders of the company [2]. Convertible Note Terms - The convertible note will accrue simple interest at a rate of 13% per annum, with quarterly cash interest payments [3]. - The principal amount and any accrued unpaid interest will be due on July 18, 2030, with payment options including cash, common shares at a conversion price of CAD$0.55, or a combination of both [4][5]. Redemption Provisions - If the company redeems the convertible note before three years, it must pay a redemption price of 102% of the principal plus accrued interest [6]. - For redemptions after three years and before maturity, the redemption price is 101% of the principal plus accrued interest [7]. Related-Party Transactions - The financings are classified as related-party transactions but are exempt from formal valuation and minority shareholder approval requirements as they do not exceed 25% of the company's market capitalization [8]. Use of Proceeds - The net proceeds from the financings will be utilized for network expansion, customer acquisition, capital expenditures, business operations, technology, and general corporate purposes [9]. Company Overview - Clip Money operates a multi-bank self-service deposit system, allowing businesses to deposit cash at various retail locations, with funds credited to their bank accounts typically within one business day [16].