YANGAROO Inc. (the “
Company” or
“
Yangaroo”) (TSX-V: YOO, OTC: YOOIF), the
industry's leading secure digital media management and distribution
company, is pleased to announce it has entered into a financing
agreement with a Canadian tier-one (“big-five”) financial
institution for a $750,000 revolving demand facility and a $150,000
lease facility (together, the “
Loan
Facility”). The proceeds from the Loan Facility will
be used to repay outstanding debentures, fund general working
capital and to reinvest into the business as the Company pursues
organic growth.
“We are very pleased to announce the closing of
the Loan Facility with a big-five financial institution and with
exceptional financial terms. It validates our activities over
the past two years to strengthen the business and further endorses
and helps execute our existing growth strategy,” said Gary Moss,
President and Chief Executive Officer of Yangaroo.
“In conjunction with the closing of the Loan
Facility, we are pleased to repay our debenture holders and we
thank them for supporting Yangaroo over the last two years.
The debenture holders valued support helped put the Company back on
track to a healthy balance sheet and a path to growth,” stated Gary
Moss.
Gary Moss further added, “Yangaroo will seek to
strategically establish relationships with leading financial
institutions to help us deliver organic growth as the Company
pursues advertising market share in the US, Latin America, and
Canada. We may also seek to use funds to pursue other related
revenue streams through investment into research and development
while we continue to invest in our competitive advantage and value
proposition.”
As of May 22, 2019, the Company’s cash position,
inclusive of funds from the revolving demand facility, is
approximately $2.6 million.
Loan Facility
Borrowings under the $750,000 revolving demand
facility bear an interest rate of prime plus 0.5 percent, are due
on demand, and are secured by a general security agreement over
most of the property of the Company. The operating line does
not contain any financial or operational covenants.
Borrowing under the $150,000 lease facility bear
an interest rate of approximately 5.0 percent, have a term of 2-4
years, and are secured by the underlying leased equipment and a
general security agreement. As of May 23, 2019, the Company
has drawn down $61,455 of this facility.
Debenture Repayment
The outstanding debentures to be repaid have a
current principal balance of $500,000 and an accrued interest
balance of $112,000. The debentures bear an interest rate of
10%, mature on February 24, 2020, and are repayable in full without
penalty.
Amended and Restated Shareholder Rights
Plan Agreement
Subject to the approval of the TSX Venture
Exchange, the Company has made certain amendments to the terms of
the proposed amended and restated shareholder rights plan
agreement (the “Plan”) to be presented for
approval at the annual general and special meeting of shareholders
of the Company, scheduled to be held on June 26, 2019 (the
“AGSM”).
The amendments to the Plan reflect updates to
securities legislation, certain amendments of a “housekeeping”
nature and an amendment to the definition of “Exercise
Price”. A copy of the proposed Plan is contained in the
management information circular of the Company in connection with
the AGSM, which has been filed and is available for viewing on the
Company’s SEDAR profile at www.sedar.com.
Management of the Company believes the terms of
the Plan to be similar to those in rights plans recently approved
by shareholders of other Canadian corporations. The Company
is not aware of any specific take-over bid for the Company in
process or currently being contemplated.
About YANGAROO:
YANGAROO is a company dedicated to digital media
management. YANGAROO’s patented Digital Media Distribution
System (DMDS) is a leading secure B2B digital cloud-based solution
focused on the music and advertising industries. The DMDS solution
provides more accountable, effective, and far less costly digital
management of broadcast quality media via the Internet. It replaces
the physical, satellite and closed network distribution and
management of audio and video content, for music, music videos, and
advertising to television, radio, media, retailers, and other
authorized recipients. The YANGAROO Awards platform is now the
industry standard and powers most of North America’s major awards
shows.
YANGAROO has offices in Toronto, New York, and
Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V)
under the symbol YOO and in the U.S. under OTCBB: YOOIF.
For YANGAROO Investor Inquiries:Gary MossPhone:
(416) 534-0607gary.moss@yangaroo.com
Cautionary Note Regarding
Forward-looking Statements
This news release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities laws. All
statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
"anticipate", "achieve", "could", "believe", "plan", "intend",
"objective", "continuous", "ongoing", "estimate", "outlook",
"expect", "may", "will", "project", "should" or similar words,
including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both
known and unknown risks, uncertainties and other factors, many of
which are beyond the control of YANGAROO, that may cause the actual
results, level of activity, performance or achievements of YANGAROO
to be materially different from those expressed or implied by such
forward looking statements, including but not limited to: the use
of proceeds of the offering, receipt of all necessary approvals of
the offering, general business, economic, competitive, political
and social uncertainties; negotiation uncertainties and other risks
of the technology industry. Although YANGAROO has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
Forward-looking statements are not a guarantee
of future performance and involve a number of risks and
uncertainties, some of which are described herein. Such
forward-looking statements necessarily involve known and unknown
risks and uncertainties, which may cause YANGAROO’s actual
performance and results to differ materially from any projections
of future performance or results expressed or implied by such
forward-looking statements. Any forward-looking statements are made
as of the date hereof and, except as required by law, neither
YANGAROO assumes no obligation to publicly update or revise such
statements to reflect new information, subsequent or otherwise.
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