Clip Money Secures $2.8 Million Investment for Growth

Clip Money Secures $2.8 Million Financing

Clip Money Inc. (TSX-V: CLIP) (OTCQB: CLPMF) has successfully completed a $2.8 million non-brokered private placement of unsecured convertible notes. The investment round, led by PeoplesBank, sees them contribute $2 million to Clip Money, with an additional $800,000 coming from Cardtronics Inc., a major shareholder and partner through the Allpoint ATM network.

The Impact of the Investment

This substantial investment is a clear indication of the confidence that these financial institutions have in Clip Money's innovative approach to business cash management. Joseph Arrage, the CEO of Clip Money, expressed his excitement about this financing and what it means for their growth trajectory.

"We are thrilled with this investment from PeoplesBank and Cardtronics," Arrage stated. "Their support reinforces our mission to innovate and enhance our platform for customer engagement. With their backing, we can expand our services further and deliver greater value to our clientele."

PeoplesBank Commitment to Innovation

Brian Canina, President and COO of PeoplesBank, shared similar sentiments, emphasizing the bank's commitment to a simplified banking experience through advanced technology solutions. He noted, "Partnering with Clip Money, which is rethinking cash management for businesses, represents our belief in the value they bring to various businesses."

The partnership aligns well with PeoplesBank's mission to enhance financial access through self-service solutions, indicating a long-term commitment to teamwork for innovation.

Details of the Convertible Notes

The convertible notes issued as part of this financing are set to mature in five years and carry an annual interest rate of 13%. Clip Money plans to implement quarterly interest payments of 50% of the accrued interest, ensuring that investors receive consistent returns on their investments. The principal repayment can be made in cash or converted into shares at a predetermined price, offering flexibility to the note holders.

Insider Participation in the Financing

Interestingly, certain insiders in Clip Money have participated in this financing round, subscribing to notes worth approximately $800,000. This aspect is noteworthy as it represents a related-party transaction, but it falls under exemptions that relieve it of formal valuation and minority approval requirements.

Utilization of Proceeds from the Financing

The funds raised through this financing will be crucial for Clip Money as they plan to enhance network expansion, improve customer acquisition strategies, and cover capital expenditures necessary for technology advancements and general corporate purposes.

All securities from this financing will be subjected to a hold period of four months plus an additional day, as stipulated by Canadian securities regulations.

Clip Money's Business Model

Clip Money operates a unique self-service deposit system via ClipDrop Boxes, allowing businesses to make cash deposits at various retail locations instead of traditional bank branches. This innovative service streamlines cash management, offers convenience, and significantly enhances the banking experience for businesses in metropolitan areas across Canada and the U.S.

About Clip Money Inc. and PeoplesBank

Clip Money combines hardware with a user-friendly mobile application and a cloud-based transaction engine, simplifying business banking deposits. The operational efficiency and speed make it a favorable choice for many businesses in need of streamlined cash management solutions. To learn more, visit www.clipmoney.com.

As a mutual bank, PeoplesBank emphasizes financial responsibility to its depositors while also focusing on community engagement and long-term viability—aligning with Clip Money’s values and mission.

Frequently Asked Questions

What is Clip Money?

Clip Money Inc. provides a self-service deposit system enabling businesses to make cash deposits at retail locations rather than traditional bank branches.

How much financing did Clip Money secure?

Clip Money secured $2.8 million in financing, primarily from PeoplesBank and Cardtronics Inc.

What will the financing be used for?

The proceeds will be utilized for network expansion, technology enhancements, and other corporate purposes.

What are convertible notes?

Convertible notes are unsecured debts that can be converted into equity shares in the company, providing flexibility for investors.

Who are Clip Money's main partners in this financing?

The main partners are PeoplesBank and Cardtronics Inc., both of which show strong confidence in Clip Money's business model.

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