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Victory Square Technologies Announces Completion of $1.3M Private Placement by V2 Games and $2.4M Convertible Loan Agreement
Friday, May 24, 2019Company Profile | Follow Company
Vancouver, BC, May 24, 2019--(T-Net)--Victory Square Technologies Inc. (CSE: VST) announced that its wholly-owned subsidiary, V2 Games Inc., has completed a non-brokered private placement offering of unsecured convertible debentures for gross proceeds of $1,319,000.
"Victory Square's core strategy is to incubate and invest in new technology businesses and to develop them into market leaders," said Shafin Diamond Tejani, Chief Executive Officer of Victory Square.
"This milestone for V2 Games is another successful example of this strategy at work. We identified an emerging space, found a solid team of thought leaders in that space, then added our strategic, operational and financial support to validate the business model. And now we've brought on a new base of strategic investors to enable V2 Games to achieve significant scale, profitability and a market leading position. This is another great victory for Victory Square and its shareholders."
V2 Games is a video and mobile game ventures firm focusing on royalty investments in high-value gaming projects featuring globally recognized intellectual properties. The company generates cash flow by streaming revenue share from world-class, recognizable gaming projects. V2 Games previously developed the hit mobile game PAC-MAN Bounce, which got over 20 million downloads.
Each Debenture issued pursuant to the Private Placement has an issue price of $1,000, a term of two years from the date of issuance and will accrue interest at a rate of 8% per annum. The principal amount of the Debentures, plus accrued and unpaid interest, will be payable in cash on the maturity date, unless otherwise converted into common shares of V2 Games prior to such date.
V2 Games intends to use the net proceeds of the Private Placement for capital expenditure requirements, investments in royalty generating gaming projects, general working capital purposes and for other corporate purposes.
"With this new investment into V2 Games, our company is poised to accelerate growth by connecting with a more diverse global group of brands to build exciting and engaging games for years to come." said Sam Chandola, founder of V2 Games.
Concurrently with the completion of the Private Placement, the Company and V2 Games entered into a convertible loan agreement, amending the terms to the $2,373,291.91 advanced by the Company to V2 Games, as well as any further amounts that may subsequently be advanced to V2 Games by the Company (the "Agreement").
Pursuant to the Agreement, the indebtedness owed by V2 Games will accrue interest at 8% per annum on the principal amount outstanding as at and from December 31, 2018, for amounts outstanding at such time, and from the date of advance, for any subsequent advance.
ABOUT VICTORY SQUARE TECHNOLOGIES INC.
Victory Square Technologies Inc. ("Victory Square" or "VST") builds and invests in emerging technology companies with proven business models and strong teams. VST portfolio companies are disrupting and fundamentally changing the business model in various sectors of the global economy including fintech, insurance, health, E-gaming and SaaS. Victory Square provides deep growth and operational support to its portfolio companies and helps them scale globally. Over time these companies are enabled to achieve significant growth and profitability. For more information, please visit www.victorysquare.com.
ABOUT THE CANADIAN SECURITIES EXCHANGE (CSE)
The Canadian Securities Exchange, or CSE, is operated by CNSX Markets Inc. Recognized as a stock exchange in 2004, the CSE began operations in 2003 to provide a modern and efficient alternative for companies looking to access the Canadian public capital markets.
FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the outlook of the business of Victory Square, including, without limitation, statements relating to V2 Games, the Private Placement, the conversion of the Debentures, the use of proceeds of the Private Placement, the Agreement, the conversion of amounts owing to Victory Square under the Agreement, a potential Liquidity Event by V2 Games and other factors beyond our control. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "believes", "expects", "anticipates", "estimates", "intends", "plans", "continues", "project", "potential", "possible", "contemplate", "seek", "goal", or similar expressions, or may employ such future or conditional verbs as "may", "might", "will", "could", "should" or "would", or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. All statements other than statements of historical fact contained in this news release are forward-looking statements. Forward-looking information is based on certain key expectations and assumptions made by the management of Victory Square. Although Victory Square believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on them because Victory Square can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements contained in this news release are made as of the date of this news release. Victory Square disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
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