Proceeds expected to be used to pay off $15 million promissory notes
By Devika Patel
Knoxville, Tenn., Aug. 18 – Frankly Inc. announced that it has arranged a $14.5 million non-revolving term line of credit and a $1.5 million non-revolving line of credit with Raycom Media, Inc.
The 10% loan is due in five years.
Raycom will also receive 40% warrant coverage on up to $6.4 million of the debt, with each warrant exercisable at C$0.50 for five years. The strike price is identical to the Aug. 18 closing share price.
Proceeds will be used to pay off the $15 million of promissory notes issued in connection with the 2015 acquisition of the company’s Frankly Media subsidiary.
The San Francisco company provides a software platform for brands and media companies to create, distribute, analyze and monetize their content across all of their digital properties on the internet, mobile and television.
| Issuer: | Frankly Inc.
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| Issue: | Line of credit
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| Amount: | $16 million ($14.5 million non-revolving term line of credit and $1.5 million non-revolving line of credit)
|
| Maturity: | Five years
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| Coupon: | 10%
|
| Warrants: | 40% coverage on up to $6.4 million of debt
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| Warrant expiration: | Five years
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| Warrant strike price: | C$0.50
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| Investor: | Raycom Media, Inc.
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| Pricing date: | Aug. 18
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| Stock symbol: | TSX Venture: TLK
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| Stock price: | C$0.50 at close Aug. 17
|
| Market capitalization: | C$11 million
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