TORONTO, ONTARIO -- (Marketwire) -- 01/06/12 -- TransGaming Inc. (TSX VENTURE: TNG), the global leader in the multiplatform deployment of interactive entertainment, today announced that it has closed its debt financing with BEST Funds as previously announced on December 23, 2011.
TransGaming received an aggregate of CAD $3,500,000 in financing from The Business, Engineering, Science & Technology Discoveries Fund and three affiliate funds (the "BEST Funds"). TransGaming Inc. issued Promissory Notes to BEST Funds and, together with all of its subsidiaries, entered into general security and share pledge agreements and provided an absolute assignment of tax credits receivable. The Promissory Notes bear interest at 16% per annum and mature July 6, 2016. Interest is payable monthly in arrears and principal is repayable monthly starting in February 2013 in an amount equal to 3% of the outstanding principal.
TransGaming will use the proceeds from the financing for general working capital purposes.
In consideration of the financing TransGaming paid BEST Funds a 7% management fee and also issued to BEST Funds 1,750,000 common share purchase warrants exercisable at $0.75, which expire on the maturity of the Promissory Notes.
About TransGaming Inc.
TransGaming Inc. (TSX VENTURE: TNG) is the global leader in the multiplatform deployment of interactive entertainment. TransGaming works with the industry's leading developers and publishers to enable and distribute games for Smart TV set-top boxes, Mac computers, and Linux/CE platforms. TransGaming is headquartered in Toronto, Canada, with offices in Ottawa and Atlanta. To learn more about TransGaming visit www.transgaming.com.
About BEST Investment Counsel Limited
Founded in 1996, BEST Funds is a leading Canadian venture capital firm. BEST is the manager of venture capital funds as well as accredited investor funds and has successfully completed over 350 transactions to date, representing the entire spectrum of VC financing, from seed-and-start-up to later-stage financing. The firm's principals bring a wealth of experience and professional designations including, CA, CFA, CBV, MBA, MSC, & LLB.
The firm's investment focus is on emerging Canadian companies engaged in software, cloud computing, financial services, and clean tech business models which fundamentally change the way people live.
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.
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