MiMedia announces first market launch in US with smartphone device partner Schok, commencement of stock trading in the US on OTCQB Marketplace and $1,000,000 Promissory Note to fund faster growth
NEW YORK, Aug. 26, 2024 /CNW/ - MiMedia Holdings Inc. (TSXV: MIM) (OTCQB: MIMDF) (FSE: KH3) ("MiMedia" or the "Company") is pleased to announce several important and exciting updates for the Company.
MiMedia Holdings Inc. logo (CNW Group/MiMedia)
First, only two months since signing its partnership with US-based device manufacturer Schok Wireless, MiMedia is pleased to announce the launch and integration of the MiMedia platform on the first set of Schok smartphones in the US. In this initial launch, MiMedia integrated its platform via an "Over the Air" or "OTA" software update, again demonstrating this capability's benefit of integrating MiMedia faster onto existing smartphones that reside currently in consumer hands. Going forward, MiMedia expects to integrate onto new Schok smartphones coming to market (as part of the new phone manufacturing process) as well as existing Schok smartphones already in the field today via the OTA method.
"I am proud of our team's ability to integrate with a new partner so quickly and seamlessly to get to market. We are, of course, excited to launch in the US for the first time with Schok. The US market, as a Tier 1 mobile advertising market, brings to our business model 7x+ higher advertising CPMs vs. other regions that we target. We are looking forward to new launches on new devices with Schok and increasing device volume in the near term, as we head into the busy season for smartphones in Q4", said Chris Giordano, MiMedia's CEO.
Second, the Company successfully started trading on August 1st in the US on the OTCQB Venture Markets exchange under the symbol "MIMDF". The Company's common shares will continue to trade on the TSX Venture Exchange under the symbol "MIM" and on the Frankfurt exchange under the symbol "KH3".
The OTCQB, operated by OTC Markets Group, Inc., is a market designed for developing and entrepreneurial companies in the United States and abroad. Chris Giordano, CEO of MiMedia Holdings Inc., commented: "We are excited to be listed in the US on the OTCQB and look forward to attracting new public market investors in the US."
Finally, the Company has closed a loan investment with an arm's length corporation, existing under the laws of the Province of Ontario (the "Lender"), pursuant to which MiMedia has borrowed a principal amount of CAD $1,000,000 (the "Loan"). The Loan is evidenced by a promissory note dated as of August 21, 2024.
The Loan has a term of 18 months, is unsecured and bears interest at a rate of 15% per annum. Interest is payable annually and on maturity in arrears. At the option of the Lender, but subject to the prior approval of the TSX Venture Exchange (the "Exchange"), the Lender may elect to receive payment of accrued interest under the Loan in subordinate voting shares of the Company, at the then current market price of the subordinate voting shares on the Exchange.
The Loan may not be prepaid, except with the consent of the Lender, and is subject to standard events of default. The proceeds of the Loan will be used by MiMedia for general corporate purposes.
Chris Giordano, CEO of MiMedia Holdings Inc., commented: "We will always consider being opportunistic to grow faster. The promissory note will allow MiMedia to leverage off the Schok deployment with our other partners in other regions of the world and increase our business development efforts."
In connection with the Loan, MiMedia has issued to the Lender an aggregate of 4,000,000 share purchase warrants (the "Warrants"). Each Warrant is exercisable to acquire one subordinate voting share of the Company at a price of $0.25 for a period of 18 months from issuance.
All securities issued pursuant to this transaction are subject to a statutory four month hold period from their date of issuance.
AboutMiMedia:MiMediaHoldings Inc. provides a next-generation consumer cloud platform that enables all types of personal media to be secured in the cloud, accessed seamlessly at any time, across all devices and on all operating systems. The company's platform differentiates with its rich media experience, robust organization tools, private sharing capabilities and features that drive content re-engagement. MiMedia partners with smartphone makers and telecom carriers globally and provides its partners with recurring revenue streams, improved customer retention and market differentiation. The platform services millions of engaged users around the world.
Notice regarding forward-looking statements: Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this press release include statements regarding: the use of proceeds of the Loan, the potential payment of the Loan in shares and the maturity of the Loan. Such forward-looking statements are based on the current expectations of management of MiMedia. Actual events and conditions could differ materially from those expressed or implied in this press release as a result of known and unknown risk factors and uncertainties affecting MiMedia, including risks regarding the industry in which MiMedia operates, economic factors, the equity markets generally and risks associated with growth and competition. Additional risk factors are also set forth in the Company's management's discussion and analysis and other filings available via the System for Electronic Document Analysis and Retrieval+ (SEDAR+) under the MiMedia's profile at www.sedarplus.ca. Although MiMedia has attempted to identify certain factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be taken as guaranteed. The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, readers should not place any undue reliance on forward looking information.
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