OTTAWA, Canada — In-Touch Survey Systems Ltd. developer of the award winning on-site survey kiosk, e-Kiosk, announced that it has entered into a letter of intent with Springboard Corporation where Springboard will arrange for a non-revolving secured credit facility in the maximum principal amount of $750,000, according to a company release.
The credit facility will be secured by a first charge against all of the assets and undertaking of In-Touch and its subsidiaries and affiliates. Interest will accrue at the rate of ten percent per annum on the actual days outstanding, calculated and compounded monthly but accrued in arrears.
Springboard will have the right to convert the debt or a portion thereof (including interest thereon) at its discretion into common shares of In-Touch at a price of $0.0375 per common shares such that Springboard would hold, post conversion, 20,000,000 common shares in the capital of In-Touch if the entire principal amount (excluding interest) is so converted.
Springboard has the right to provide further financing to In-Touch if so required in an amount not to exceed $750,000 which loan shall bear the same interest rate and have the same conversion features as the original debt instrument. Should Springboard exercise the right to provide such further financing, it shall also be entitled to receive warrants to purchase up to
5,000,000 common shares of In-Touch at a purchase price of $0.05 per common share.
In-Touch will use the proceeds from the loan transaction for operating expenses. Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. The Board of Directors have unanimously approved this proposal.
"Springboard Corporation's offer of a Credit Facility to In-Touch comes at a very critical time for the company." stated Richard Bertrand, interim Chief Executive Officer, In-Touch Survey Systems Inc. "Without their intervention and support, In-Touch Survey Systems Inc. would have faced serious consequences in the near future. Springboard Corporation is well positioned to assist the company to ensure its financial stability and future
growth".
In-Touch Survey Systems has exhausted all other efforts of finding financing. The Springboard Corporation offer was the most acceptable. Should this proposed financing not come in immediately the Company would not be able to meet its ongoing obligations.
