Intermap Announces Debt Restructuring and Equity Rights Offering

Posted by Intermap Technologies

Dec 21, 2016 2:09:35 PM

DENVER, December 21, 2016 - Intermap (TSX: IMP), (ITMSF:BB), a leading geospatial intelligence Corporation, today announced that it has entered into a series of related arrangements with Vertex One Asset Management Inc., on behalf of the Vertex Fund, (“Vertex”), its existing lender and principal shareholder, that are intended to restructure Intermap’s outstanding indebtedness, reduce its interest and certain other payment obligations, and provide the necessary working capital to pursue Intermap’s business objectives.

As part of these arrangements, Vertex has agreed to provide a Standby Purchase Commitment to backstop the issuance of US$6,000,000 of the Corporation’s common shares through an exempt Equity Rights Offering to all existing shareholders (the “Rights Offering”). The proceeds from the Rights Offering will be used to repay the Bridge Loan described below.  It is anticipated that the Rights Offering will be completed during the first quarter of 2017.

In conjunction with its Standby Purchase Commitment, Vertex has provided a new US$6,000,000 Bridge Loan to fund general corporate purposes until the Rights Offering is completed. The Bridge Loan will be repaid from the gross proceeds of the Rights Offering (including proceeds received in connection with the Standby Purchase Commitment). Any unpaid amounts under the Bridge Loan, following the Rights Offering, if any, will convert into a term loan with a maturity of September 1, 2020. The Bridge Loan is non-interest bearing.

“We are extremely pleased that our primary lender and largest shareholder, one of the stakeholders that knows Intermap best, has provided equity financing and a strong vote of confidence”, commented Patrick Blott, Executive Chairman and CEO of Intermap. “Vertex has agreed to make this investment available to all our existing shareholders. It sends a clear signal to our customers, partners, and employees that the Corporation enjoys strong financial support from a sophisticated and committed investor.”

In conjunction with these new financings, Vertex has agreed to restructure its existing indebtedness and provide funds, as follows:

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Topics: Board of Directors, Changes, debt

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