TORONTO, ON / ACCESSWIRE / May 12, 2017 / StableView Asset Management Inc. ("StableView") announces that on May 8, 2017, pursuant to a non-amortized term facility of up to $5,000,000 between StableView and Clarocity Corporation ("Clarocity") (TSX-V: CLY) (OTC PINK: ZAOFF), Clarocity issued $4 million in principal amount of convertible debentures at a price of $1,000 per $1,000 principal amount of debenture ("Debentures"). Each Debenture has a term of 3 months, which may be extended at the option of StableView for a further nine months. The Debentures bear an interest rate of 2% per month calculated and payable monthly in cash or in common shares ("Common Shares") of Clarocity, subject to reduction to 8% per annum if StableView extends the term for a further nine months. The Debentures are secured against all of Clarocity and its subsidiaries' property and assets and will be registered in all of the jurisdictions in which Clarocity and its subsidiaries carry on business. The Debentures are convertible at $0.16 per share. In addition, StableView acquired control or direction over principal amount $1,000,000 non-convertible debentures pursuant to a drawdown fee.
As of the date hereof, the StableView exercises control or direction over approximately 22,878,057 Common Shares representing 10.24% of the issued and outstanding Common Shares. Assuming that StableView fully converts the principal of the Debentures into Common Shares at the conversion price of $0.16, StableView would exercise control or direction over approximately 47,878,057 Common Shares representing 19.28% of the issued and outstanding Common Shares immediately following conversion.
StableView acquired the Debentures for investment purposes and may, depending on market and other conditions, increase or decrease its control or direction over securities of Clarocity.
For more information or to obtain a copy of the early warning report filed under National Instrument 62-103, please contact:
StableView Asset Management Inc.
Attention: Colin Fisher
Telephone: 416-920-8600
SOURCE: StableView Asset Management Inc.
