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Armada Announces Financing

Wednesday, September 28, 2022 6:00 PM
Armada Data Corporation

MISSISSAUGA, ON / ACCESSWIRE / September 28, 2022 / Armada Data Corporation (TSXV:ARD) (the "Company" or "Armada") is pleased to announce that it has entered into a loan agreement (the "Loan Agreement") to borrow up to a maximum of $200,000 (the "Loan") from 2190960 Ontario Ltd. (the "Lender"). As security for the Loan, a general security agreement was entered into in favour of the Lender. The Loan bears interest at a rate of 12% per annum payable monthly from the applicable date of advance. The Loan matures on September 28, 2025.

Amounts shall be advanced during the term of the Loan in such amounts and at such times as requested by the Company, up to the maximum amount of $200,000. Amounts outstanding under the Loan will be represented by a grid promissory note issued by the Company in favour of the Lender.

The Company intends to use the proceeds of the Loan for working capital and general and corporate purposes. The Company intends to repay the Loan from operating cash flows.

The Lender is a corporation owned and controlled by James Matthews, a director and Chief Executive Officer of the Company. Accordingly, the Loan is a related party transaction within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). A resolution of the board of directors of the Company was passed to approve the Loan, with James Matthews abstaining from voting. No materially contrary view or abstention was exercised or made by any other director.

The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) (company listed on the TSXV) and 5.7(1)(f) (loan to issuer, no equity or voting component) in respect of such transaction. The Loan was obtained on reasonable commercial terms that were not less advantageous to the Company than if the Loan were obtained from an arm's length party; and the Loan is not convertible or repayable in securities of the Company.

The Company did not file a material change report more than 21 days before the closing, which it considers reasonable in the circumstances, as the Loan was not finalized with a related party of the Company until shortly prior to closing and the Company was attempting to close the transaction expeditiously.

About Armada Data Corp.

Armada Data is a Canadian publicly traded Information & Marketing Services Company providing accurate and real-time data to institutional and retail customers, through developing, owning and operating automotive pricing-related web sites and providing information technology and marketing services to its clients.

Armada Data shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada currently has a total of 17,670,265 shares outstanding.

Additional information relating to Armada Data Corporation is filed on SEDAR, and can be viewed at www.sedar.com.

For further information, please contact:
Armada Data Corporation
Mr. R. James Matthews, President & CEO
Email: [email protected]

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.

SOURCE: Armada Data Corporation

Topic:
Company Update
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