Imagination Park Technology announces closing of oversubscribed convertible debenture for CAD $1,500,000

In Augmented Reality News

February 26, 2020 – Imagination Park Technologies Inc. has today announced that it has closed its previously announced convertible debenture for an oversubscribed total amount of CAD $1,500,000. The company has stated that it intends to use the proceeds of the financing for marketing, sales, and general corporate purposes.

Convertible debenture is a type of long-term debt issued by a company that can be converted into stock after a specified period. Convertible debentures are usually unsecured bonds or loans meaning that there is no underlying collateral connected to the debt (source: Investopedia).

Imagination Park states that the debentures will mature on the date that is twenty-four months from the date of issuance and bear interest at a rate of 12% per annum, payable in common shares at a price equal to the closing price on the day before the interest is due and payable. The debentures are convertible into units at CAD $0.05 per unit. Each unit consists of one common share and one warrant exercisable at CAD $0.10 for a period of three years from the date the debentures are issued. The debentures may be converted by the holder at any time prior to maturity and they will automatically convert to units on 30-day notice if the common shares trade at or above CAD $0.20 for a period of 20 days at any time after four months and one day from the Issued Date.

The debentures and the units issuable upon the conversion of the debentures will be subject to a statutory resale restriction for four months and one day from the date of closing. Imagination Park may pay finder’s fees in accordance with Canadian Securities Exchange policies.

In addition to the convertible debenture announcement, Imagination Park has also confirmed that Mike Tunnicliffe, who recently joined the Board of Advisors, has now been appointed to the company’s Board of Directors. Tunnicliffe previously served as EVP, Head of Universal Music Group and Brands-USA.

Image credit: Imagination Park

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Sam Sprigg

Sam is the Founder and Managing Editor of Auganix. With a background in research and report writing, he has been covering XR industry news for the past seven years.