Intermap Technologies Corporation, a leading provider of geospatial solutions on-demand created from its uniform, high-resolution 3D digital models of the earth's surface, today announced that it has entered into an agreement to complete a non-brokered $7.3 million debt financing with Vertex One Asset Management of Vancouver, BC.
"The financing provides the company with the resources to retire an outstanding note payable that became due earlier this month, consolidate debt, and add the working capital needed for the execution of our business plan," said Todd Oseth, Intermap's President and CEO. "Partnering with Vertex, a leading Canadian fund, provides Intermap with the financial backing required to complete the Company's transformation into a 3DBI geospatial software-driven company, as well as support the Company's continued pursuit of Spatial Data Infrastructure (SDI) opportunities around the world. We are pleased that Vertex has recognized Intermap's strategic positioning in, and vision for, the evolving geospatial technology sector."
The promissory notes granted under the debt financing will mature 12 months from the date of issuance. Simple interest is payable at maturity at an annual rate of 25.0%. As additional consideration for the debt financing, the company entered into a royalty agreement with Vertex, pursuant to which the company agreed to pay Vertex a 17.5% royalty on its net revenues. Under the terms of the financing, Vertex assumed the obligations of an outstanding $5.0 million note (plus accrued interest of $800,000), which was issued on February 6, 2014, and became due on February 6, 2015. Vertex subsequently retired the February 2014 note obligation, and the 12,367,054 conversion shares associated with the note were cancelled. The debt financing is subject to a prepayment right by the company at 125% of the principal amount at anytime, subject to a 30 day notice period.
The company intends to use the net proceeds of the Debt Financing for general corporate purposes.
Vertex is a Vancouver-based asset management firm currently handling $2.1 billion in assets. Vertex looks for misvalued companies with a catalyst in the near future, while also paying attention to valuation relative to industry peers.
Intermap is an industry leader in geospatial solutions on demand with its secure, cloud based Orion Platform. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of geospatial data into a single source, the Orion Platform is able to provide location- based solutions for customers in diverse markets around the world.