17 May, 2012 DENVER , May 17, 2012 /CNW/ - (IMP.TO) - Intermap Technologies Corporation ("Intermap" or the "Company"), a leading provider of location based information solutions created from its uniform, high-resolution 3D digital models and orthorectified imagery of the Earth's surface, today announced it has entered into an agreement to issue a non-brokered US$2.5 million convertible debt financing (the "Debt Financing").
The Debt Financing will mature 12 months from the date of issuance and is convertible into common shares of the Company ("Common Shares") at the holder's option at a price of C$0.25 per Common Share, subject to adjustment in certain events. Simple interest is payable at maturity at an annual rate of 21.0%. In addition, 1,700,000 detachable warrants will be issued to the purchaser of the convertible debt entitling the holders to purchase 1,700,000 Common Shares at a price of C$0.31 per share. The warrants expire in three years and are subject to adjustment in certain events.
The Debt Financing is subject to a prepayment right by the Company at 121% of the principal amount at anytime following six months from the date of closing, subject to a 60 day notice period and the holder's right to exercise its conversion rights during any such notice period.
The Company intends to use the proceeds of the Debt Financing to repay a currently outstanding senior secured loan and for working capital required to fund certain mapping services contracts during the term of the loan.
The Debt Financing is expected to be completed on or about May 28, 2012 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX, and satisfaction to all other customary closing conditions.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from those registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Intermap Technologies
Headquartered in Denver , Colorado - Intermap (www.intermap.com) is a leading provider of Location-Based Information (LBI), setting the industry standard for creating high-resolution 3D digital models of the earth's surface. The Company has remapped entire countries, to build NEXTMap® national databases consisting of affordably priced elevation data and geometric images of unparalleled accuracy. Turnkey solutions can be purchased from the Company's NEXTMap Online Store, a hosted web services platform offering a variety of subscription levels by geography, data-layer, individual or enterprise wide license. Intermap's cloud-based hosted model offers customers the most convenient and affordable method to satisfy their needs with both Platform as a Service (PaaS) and Software as a Service (SaaS) options.
Intermap Reader Advisory
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.