Clarocity Corporation Announces Closing of Third Tranche of Standby Financing

Clarocity Corporation Announces Closing of Third Tranche of Standby Financing for $295,000 and Amendment of Initial Maturity Date

 

Carlsbad, California – August 17, 2017 – Clarocity Corporation (TSXV: CLY OTC: CLRYF) (the “Company” or “Clarocity”) announces that it has closed the third and final tranche of the previously announced (see August 31, 2016 and May 10, 2017 press releases) up to $5 million non-amortized term Facility (“Facility”) provided by StableView Asset Management Inc. as Lender Representative (“StableView”) on behalf of managed accounts and funds with gross proceeds of $295,000.

 

Clarocity and StableView have agreed to extend the initial maturity date of the Debentures issued pursuant to the Facility from August 8, 2017 to October 8, 2017.  Debentureholders have approved the extension of the initial maturity date pursuant to an extraordinary resolution.

 

“This additional funding support has provided us with the resources to further develop both our technology and our markets” said Shane Copeland, CEO of Clarocity Corporation. “We are greatly appreciative for the support this funding has provided Clarocity. The transformation that is occurring in the U.S. residential real estate valuation space is rare and significant as well as highly important to shareholder return on investment.  We would not have been able to get this far down the path without this funding support.”

 

Clarocity issued an aggregate amount of $295,000 in principal amount of debentures (“Debentures”) at a price of $1,000 per $1,000 principal amount of Debenture. The Debentures bear an interest rate of 2% monthly until October 8, 2017 and 8% per year calculated and payable monthly in cash or in common shares (“Common Shares”), at the option of StableView for the balance of the term. The Facility is secured against all of the Company’s and its subsidiaries’ property and assets and will be registered in all of the jurisdictions in which the Company and its subsidiaries carry on business. Clarocity also paid a drawdown fee of 20% of the amount drawn down under the Facility ($59,000) added to the principal amount of the Facility.

 

The Facility is convertible at $0.16 per share.

 

The funds are being used for general corporate purposes.

 

Dave Guebert, Chief Financial Officer of the Company, directly subscribed for an aggregate of $100,000 of Debentures and StableView subscribed for an aggregate of $195,000 of Debentures. Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the issuance of securities to Mr. Guebert and to StableView constitute “related party transactions”. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 based on a determination that the securities of Clarocity are only listed on the TSX Venture Exchange and that the fair market value of the issuance of the Debentures, insofar as interested parties are involved, does not exceed 25% of the market capitalization of the Company.

 

The transaction is subject to the submission of final documents and final approval of the TSX Venture Exchange.

 

 

 

For further information, visit www.clarocity.com or contact:

 

Shane Copeland

CEO

Clarocity Corporation 760-208-6460

scopeland@clarocity.com

Babak Pedram

Investor Relations

Virtus Advisory Group Inc. 416-644-5081

bpedram@virtusadvisory.com

 

 

About Clarocity Corporation

 

Clarocity Corporation provides real estate valuation solutions and platform technologies designed to address today’s dynamic housing market. Our innovative platform is driving the next-generation of valuation solutions such as MarketValue Pro (MVP) and BPOMerge and setting new standards in real estate valuation quality and reliability.

 

Every day GSE, banking, and investor clients rely on our proprietary solutions to value assets, fund loans, and securitize portfolios. As a fully integrated technology and valuation services company, Clarocity provides a full spectrum of appraisal and alternative valuation solutions. For more information, visit www.clarocity.com.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Forward-Looking Information

 

This news release contains forward-looking statements which may include financial and business prospects, as well as statements regarding the Company’s future plans, objectives or economic performance and financial outlooks. Such statements are subject to risk factors associated with the real estate industry, the overall economy in both Canada and the United States. The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements. In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.

 

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the U” .S. Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.