Clip Money Inc. Secures a US$3 Million Loan from BDC

Core Viewpoint - Clip Money Inc. has secured a CAD$3 million loan from the Business Development Bank of Canada to support its working capital and growth initiatives, marking a significant milestone for the company [1][3][5]. Financial Details - The BDC Loan has a maturity date of August 15, 2028, with an interest rate of 6.8% per annum plus 1% per annum, calculated daily [2]. - An additional interest component of 7.45% per annum is applicable, calculated monthly on the total indebtedness [2]. - The principal amount can be repaid as a balloon payment on the maturity date, along with all accrued and unpaid interest [2]. Security and Guarantees - Clip Money and its subsidiary have granted BDC a first-ranking security interest over substantially all of their present and after-acquired personal property [3]. - Clip Money (USA) Inc. has provided a guarantee for 100% of the amounts owed under the BDC Loan [3]. Loan Structure and Fees - There are no bonus securities, finder's fees, or other equity instruments associated with the BDC Loan [4]. - Compensation to BDC is limited to interest payments and customary cash fees, including a monthly management fee of CAD$500 and a standby fee starting October 10, 2026, at a rate of 3% per annum on the undrawn portion of the loan [4]. Company Overview - Clip Money operates a multi-bank self-service deposit system, allowing businesses to deposit cash at various locations outside their bank branches [9]. - The company combines hardware, a mobile app, and a cloud-based transaction engine to facilitate business banking transactions efficiently [9]. - Clip Money aims to provide a cost-effective and convenient solution for business banking deposits across Canada and the United States [9].